Private retailers have stopped adding new retail outlets for petrol and diesel as their sales continue to dwindle due to high price differential with pumps operated by state-run oil marketing companies.“Of total retail outlets commissioned in April-July 2006, only 10 per cent are by private oil companies indicating a slowdown due to declining retail sales as a result of price difference with public sector undertakings,’’ says a Petroleum Ministry status paper.Oil companies, all put together, commissioned nearly 180 outlets in the three months as compared to setting up 200 each month in the previous years. Private retailers’ sales of diesel dropped 64 per cent in July over last year with the volumes shifting to OMCs, of which Bharat Petroleum gained the most, it said.Private companies, largely Reliance Industries Ltd, saw diesel sales at 88,600 tonnes in July 2006 from 2,44,900 tonnes a year ago. Reliance recorded a drop of 69 per cent in diesel sales in June over the previous year’s figure. Petrol sales are also declining in absolute terms for private firms with the July figure at 28,500 tonnes compared to June sales of 33,600 tonnes. Compared to May, petrol sales in June were down 42 per cent, said the paper.Price of diesel and petrol at private outlets are Rs 2.30 per litre more than the government-fixed prices at outlets of OMCs. The high pricing is also an attempt by private firms to discourage sales as the net loss on petrol and diesel is about Rs 5 a litre when compared to input costs.Low domestic sales have pushed Reliance to send out more of diesel, petrol, naphtha and fuel oil outside the country. It clocked about 60 per cent of the total exports estimated at 2.786 million tonnes, a growth of 107 per cent over last year.
