Indian Fuel Retailers Ration Sales Amid Rising Oil Prices

Reliance Industries Ltd., one of India's largest privately owned fuel retailers, and Nayara Energy Ltd. are rationing diesel and gasoline sales due to rising crude costs and flat retail prices.

According to people familiar with the matter, this move is an effort to limit losses for both companies as oil prices have climbed to around $108 a barrel. Despite this significant increase in global oil prices, Indian gas pump prices have remained unchanged since May.

This discrepancy has led Reliance and Nayara to adopt a rationing strategy, allowing them to manage their losses while awaiting a potential adjustment in retail prices by the federal government, their largest shareholder.