Latest news with #Rosneft-backed
Time of India
2 days ago
- Business
- Time of India
Pvt fuel retailers gain mktshare as PSUs refuse to lower prices
Private fuel retailers Reliance Industries and Rosneft-backed Nayara Energy are profiting from a market distortion created by state-run companies ' refusal to cut pump prices, even as international fuel prices have fallen sharply. Crude prices are down 20% year-on-year, petrol by 14% and diesel by 17%, yet domestic pump prices remain frozen. This has resulted in windfall margins for both state-run and private-sector fuel retailers. Reliance Industries and Nayara Energy are using these margins to undercut state-run firms by up to ₹3 per litre, steadily eroding their market share in the retail petrol and diesel business, according to industry executives. In April-May, the private sector's share of diesel sales increased to 11.5% from 9.6% a year earlier. In petrol, the share increased to 10% from 9%. At the same time, in the bulk diesel business, state-run and private suppliers were locked in a fierce battle, offering fuel at steep discounts to retail prices-highlighting just how much room there is to cut prices in a truly competitive market, according to executives. State-run Indian Oil Corporation regained significant share from private players in the bulk diesel segment during April-May. State-run firms are reluctant to reduce pump prices, multiple executives said, as they want to use the expanded margins from petrol and diesel to offset losses incurred on LPG sales to households. The government regulates LPG prices and is expected to compensate state-run firms for losses when the fuel is sold below market rates. However, in 2024-25, Indian Oil Corporation, Hindustan Petroleum, and Bharat Petroleum suffered a combined loss of ₹41,266 crore on LPG sales and received no compensation. Private fuel retailers, by contrast, do not bear such LPG-related losses.
Time of India
2 days ago
- Business
- Time of India
Private fuel retailers gain market share as PSUs refuse to lower prices
Private fuel retailers Reliance Industries and Rosneft-backed Nayara Energy are profiting from a market distortion created by state-run companies' refusal to cut pump prices, even as international fuel prices have fallen sharply. Crude prices are down 20 per cent year-on-year, petrol by 14 per cent and diesel by 17 per cent , yet domestic pump prices remain frozen. This has resulted in windfall margins for both state-run and private-sector fuel retailers. Reliance Industries and Nayara Energy are using these margins to undercut state-run firms by up to ₹3 per litre, steadily eroding their market share in the retail petrol and diesel business, according to industry executives. In April-May, the private sector's share of diesel sales increased to 11.5 per cent from 9.6 per cent a year earlier. In petrol, the share increased to 10 per cent from 9 per cent . At the same time, in the bulk diesel business, state-run and private suppliers were locked in a fierce battle, offering fuel at steep discounts to retail prices-highlighting just how much room there is to cut prices in a truly competitive market, according to executives. State-run Indian Oil Corporation regained significant share from private players in the bulk diesel segment during April-May. State-run firms are reluctant to reduce pump prices, multiple executives said, as they want to use the expanded margins from petrol and diesel to offset losses incurred on LPG sales to households. The government regulates LPG prices and is expected to compensate state-run firms for losses when the fuel is sold below market rates. However, in 2024-25, Indian Oil Corporation, Hindustan Petroleum , and Bharat Petroleum suffered a combined loss of ₹41,266 crore on LPG sales and received no compensation. Private fuel retailers, by contrast, do not bear such LPG-related losses.
Time of India
3 days ago
- Business
- Time of India
IndianOil gains bulk diesel market share in April-May, beats Reliance Industries and Nayara
IndianOil has jolted the bulk diesel market, increasing its share by 10 percentage points in April-May and wresting ground from Reliance Industries and Rosneft-backed Nayara Energy-a striking reversal driven by new chairman A S Sahney's break from predecessor SM Vaidya's margin-first playbook in favour of market dominance. IndianOil's share surged to 53.5per cent in April-May this year, up from 43.6per cent in the same period last year, forcing private sector rivals RIL and Nayara to surrender a combined 7 percentage points from their last year's share of 25.7per cent . RIL's share dropped to 9.9per cent from 13.8per cent , while Nayara's fell to 8.7per cent from 11.9per cent . Among state-run firms, Hindustan Petroleum 's share contracted to 12.9per cent from 14.2per cent and Bharat Petroleum 's declined to 12.5per cent from 14.8per cent . IndianOil is using aggressive price discounts to boost volumes and push competitors aside, multiple industry executives said. Lower crude prices-currently around $65 per barrel, down from nearly $80 in January-have fattened oil companies' margins, enabling them to offer steeply discounted diesel to large customers. While all suppliers are offering diesel to bulk buyers below pump prices, some are going deeper to gain market share, they said. IndianOil has traditionally dominated diesel sales, but its market share slid to 43.6per cent in April-May 2024, down from 52per cent in the same period of 2023 and 60per cent in 2022. "As a marketing organisation, you can't afford to lose market share so rapidly. One day, you might suddenly find too much volume sitting in your refinery, hurting profits and limiting your ability to invest," said an industry executive defending the company's aggressive push. Roughly 12per cent of the diesel sold in India goes to bulk buyers, with the rest sold through petrol pumps. Bulk consumers such as the railways, defence and state transport corporations usually pay contracted prices discovered through tenders, while miners, manufacturers and smaller users typically buy on a monthly basis-shifting to whichever supplier offers the steepest discount. IndianOil's recent gains are concentrated among miners, manufacturers and some transporters, with strong traction in the mining belts of Jharkhand, West Bengal and Chhattisgarh, as well as in Rajasthan, Haryana and other states.
Time of India
3 days ago
- Business
- Time of India
IndianOil gains bulk diesel market share in April-May, beats Reliance Industries and Nayara
IndianOil has jolted the bulk diesel market, increasing its share by 10 percentage points in April-May and wresting ground from Reliance Industries and Rosneft-backed Nayara Energy-a striking reversal driven by new chairman A S Sahney's break from predecessor SM Vaidya's margin-first playbook in favour of market dominance. IndianOil's share surged to 53.5per cent in April-May this year, up from 43.6per cent in the same period last year, forcing private sector rivals RIL and Nayara to surrender a combined 7 percentage points from their last year's share of 25.7per cent . RIL's share dropped to 9.9per cent from 13.8per cent , while Nayara's fell to 8.7per cent from 11.9per cent . Among state-run firms, Hindustan Petroleum 's share contracted to 12.9per cent from 14.2per cent and Bharat Petroleum 's declined to 12.5per cent from 14.8per cent . IndianOil is using aggressive price discounts to boost volumes and push competitors aside, multiple industry executives said. Lower crude prices-currently around $65 per barrel, down from nearly $80 in January-have fattened oil companies' margins, enabling them to offer steeply discounted diesel to large customers. While all suppliers are offering diesel to bulk buyers below pump prices, some are going deeper to gain market share, they said. IndianOil has traditionally dominated diesel sales, but its market share slid to 43.6per cent in April-May 2024, down from 52per cent in the same period of 2023 and 60per cent in 2022. "As a marketing organisation, you can't afford to lose market share so rapidly. One day, you might suddenly find too much volume sitting in your refinery, hurting profits and limiting your ability to invest," said an industry executive defending the company's aggressive push. Roughly 12per cent of the diesel sold in India goes to bulk buyers, with the rest sold through petrol pumps. Bulk consumers such as the railways, defence and state transport corporations usually pay contracted prices discovered through tenders, while miners, manufacturers and smaller users typically buy on a monthly basis-shifting to whichever supplier offers the steepest discount. IndianOil's recent gains are concentrated among miners, manufacturers and some transporters, with strong traction in the mining belts of Jharkhand, West Bengal and Chhattisgarh, as well as in Rajasthan, Haryana and other states.
Time of India
3 days ago
- Business
- Time of India
IndianOil gains bulk diesel market share in April-May, beats Reliance Industries and Nayara
IndianOil has jolted the bulk diesel market, increasing its share by 10 percentage points in April-May and wresting ground from Reliance Industries and Rosneft-backed Nayara Energy-a striking reversal driven by new chairman A S Sahney's break from predecessor SM Vaidya's margin-first playbook in favour of market dominance. IndianOil's share surged to 53.5% in April-May this year, up from 43.6% in the same period last year, forcing private sector rivals RIL and Nayara to surrender a combined 7 percentage points from their last year's share of 25.7%. RIL's share dropped to 9.9% from 13.8%, while Nayara's fell to 8.7% from 11.9%. Among state-run firms, Hindustan Petroleum 's share contracted to 12.9% from 14.2% and Bharat Petroleum 's declined to 12.5% from 14.8%. IndianOil is using aggressive price discounts to boost volumes and push competitors aside, multiple industry executives said. Lower crude prices-currently around $65 per barrel, down from nearly $80 in January-have fattened oil companies' margins, enabling them to offer steeply discounted diesel to large customers. While all suppliers are offering diesel to bulk buyers below pump prices, some are going deeper to gain market share, they said. IndianOil has traditionally dominated diesel sales, but its market share slid to 43.6% in April-May 2024, down from 52% in the same period of 2023 and 60% in 2022. "As a marketing organisation, you can't afford to lose market share so rapidly. One day, you might suddenly find too much volume sitting in your refinery, hurting profits and limiting your ability to invest," said an industry executive defending the company's aggressive push. Roughly 12% of the diesel sold in India goes to bulk buyers, with the rest sold through petrol pumps. Bulk consumers such as the railways, defence and state transport corporations usually pay contracted prices discovered through tenders, while miners, manufacturers and smaller users typically buy on a monthly basis-shifting to whichever supplier offers the steepest discount. Live Events IndianOil's recent gains are concentrated among miners, manufacturers and some transporters, with strong traction in the mining belts of Jharkhand, West Bengal and Chhattisgarh, as well as in Rajasthan, Haryana and other states. Economic Times WhatsApp channel )
