Diesel prices for industries may be rais

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NEW DELHI: The government may charge higher diesel prices for industrial users and allow Reliance Industries to sell gas oil from its export-focused refinery to local retailers struggling to meet soaring demand, senior officials said. Diesel sales have risen sharply despite the government’s move to raise fuel prices by about 10% in early June.

Use of diesel by industrial units, which find the subsidised fuel cheaper than freely priced fuel oil, and for emergency power supply in homes, malls and offices, has raised demand and forced refiners to increase imports. Diesel sales rose 18% during April-July compared to a year ago, the chairman of India’s biggest oil refiner and retailer, IndianOil Corp, Sarthak Behuria said.

Sales to agriculture and transport sectors rose 10-12% while that to power and other sectors rose 30%, he said. “We are exploring the possibilities of differential pricing for commercial consumers. A note has been put up with the ministry,’’ Behuria said.

Hindustan Petroleum chairman Arun Balakrishnan said state refiners wanted to sell diesel at market prices to industrial clients.