Supply of branded fuel to see boost in India

Oil companies in India have reduced the supply of unleaded petrol and normal diesel to boost the sale of branded fuel, which costs more in the market – as its sale could apparently make up a bit for their heavy losses. City petrol pumps, after crude oil prices touched US$135 a barrel, are getting supplies reduced by an average of 30 to 40%. At some places, the supply is less by 50%. The short supply of the essentially important fuel coincides with the shortage of cooking gas cylinders, which is another crisis in the making. Branded fuel constitutes 13% of the total supply. The HSD dealers are under pressure from companies to increase the sale ratio to 30% in diesel and 50% in petrol. Branded fuel costs roughly Rs3 (US$0.07) more than the normal fuel. Sources said companies could bring down the supply of normal fuel to 25% by the end of June. (May 29, 2008)