Private versus PSU petrol pumps: Price differential rises to as much as Rs 34/L

Ahmedabad Mirror | 1 week ago | 23-06-2022 | 06:00 am

Private versus PSU petrol pumps: Price differential rises to as much as Rs 34/L

The fuel price differential between PSU petrol pumps and private players like Shell, Reliance and Nayara has increased exponentially due to dynamic pricing mechanism and rise in crude oil prices in the international market.Public Sector Undertakings (PSU) like Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation Ltd (IOCL) have maintained fuel prices following reduction in indirect taxes on fuel by the Centre and towing thepolitical line.As of June 22, Shell was selling diesel atRs 125.87 per litre whereas petrol atRs 105.84 per litre. Similarly, for Nayara the diesel price is Rs 97.18 per litre whereas petrol price is Rs 101.69 per litre. Reliance is selling diesel at Rs 97.30 per litre and petrol at Rs 103.60 per litre.PSUs are selling diesel at Rs 92.19 per litre whereas petrol at Rs 96.45 per litre.The difference in price of Shell and PSU petrol pumps comes to Rs 33.68 per litre of diesel and Rs 9.39 per litre of petrol.Most commuters in the city are shifting to PSUs from private pumps as it has now started to pinch their pockets. Take the case of Sanjay Shah, a businessman living in Shyamal area. He has five petrol cars and used to get Shell petrol for all his cars. He has now shifted to PSU petrol pump.“Earlier, the difference was hardly about Rs 2 per litre which we could bear, thinking we are getting good quality petrol. However, with the current price hike of close to Rs 10 per litre, I don’t think it is feasible to stick to it,” said Shah.Daniyal Delhiwala, another businessman who lives in Paldi area, said, “In the current market wherein inflation is already at its peak, businesses are hit hard which has affected monthly incomes.It is practical to get fuel at PSU pumps.”He added, “The government must look into the matter and try to bring private pumps under regulation. Recently, when PSU pumps were running dry, we were forced to buy from private pumps and pay a hefty premium.”President of Gujarat Petroleum Dealers Association (GPDA) Arvind Thakkar said, “The price hike is seen because of the turmoil in the international market. One of the reasons is the effect of the Russia-Ukraine war on crude prices and second is the Dollar-Rupee effect.”He explained, “Since private players aren’t under any regulation, they pass on complete cost to the consumer unlike the PSUs that have to toe the government line.”A private company executive manning one of the petrol pumps said they might further hike the rates if prices rise in the international market as they continue to sell fuels at a loss despite steep price differential with PSUs.​​​​​​​

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