With crude oil prices reaching records highs, Reliance Industries Limited (RIL) has decided to progressively suspend of sales at its around 1,400 petrol pumps across the country. However, Essar claims it would operate its 1,250-odd pumps despite negligible sales. In the present scenario, state-owned oil companies are suffering a loss of about Rs 21 and Rs 14 per litre respectively of petrol and diesel. The price differential between petro products retailed by state-owned oil marketing companies and private players is so high that customers don’t even think of buying petrol and diesel from RIL and Essar outlets. The crude price of the Indian basket touched $112 per barrel yesterday.

Industry sources said RIL has not written off its petrol pumps completely. It has only opted for progressive suspension of fuel retail outlets. That means the retail outlets would not be supplied fuel further and would continue operate till they exhaust their inventory. When contacted, an Essar official said, “Due to low volumes, sales from our outlets are curtailed. We hope to tide over this tight period and wait for a level playing field to compete in a fair manner in the market. We have not decided to suspend sales or close down our petrol pumps.”