State-run fuel retailers are facing significant losses in market share as private petrol outlets, offering a Rs.3 per litre “happy hours discount,” have drawn customers away. Dealers from Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL), and Bharat Petroleum Corporation (BPCL) are reporting a drop of up to 50% in sales, urging these companies to lower their fuel prices to remain competitive.
Since the deregulation of petrol and diesel sales in 2010, private players like Jio-BP and Nayara have been allowed to compete with state-owned firms, resulting in price-based competition. Dealers from states like Punjab, Rajasthan, Bihar, Haryana, and the National Capital Region (NCR) have expressed concern that the price advantage held by private outlets is significantly hurting their sales.
Monty Sehgal, a petrol pump dealer in Jalandhar and spokesperson for the Petrol Pump Dealers Association of Punjab, noted that local state-run outlets are losing between 25% to 50% of their daily sales, depending on their proximity to private fuel stations. Similarly, in Rajasthan, dealers have warned that 30-40% drops in petrol and diesel sales could lead to widespread pump closures, with some dealers unable to cover operational costs if this trend continues for two months.
Despite social media posts confirming discounts at Jio-BP and Nayara outlets, state-run dealers, like Brajesh Sharma in Madhya Pradesh, are pressing the government to allow state-owned firms to reduce their prices to match private retailers, particularly since international oil prices have fallen sharply.
Since March 2024, state-owned companies have not reduced fuel prices, even as Brent crude prices have dropped by 14%. While private companies are thriving with profit margins between Rs.10-15 per litre, state-run dealers are unable to offer similar discounts, citing the limited commission they receive for each sale. Dealers are calling for urgent action to prevent further losses and potential closures.
, Hindustan Petroleum Corporation (HPCL), and Bharat Petroleum Corporation (BPCL) are reporting a drop of up to 50% in sales, urging these companies to lower their fuel prices to remain competitive.){kind=link}