Reliance Industries has begun capping fuel purchases at its retail outlets, limiting customers to about ₹1,000 ($10.8) per visit, according to a Bloomberg report.
The move comes as supply disruptions persist despite a tentative ceasefire in the Middle East.
The restrictions apply to stations operated under its joint venture with BP, which runs more than 2,000 fuel pumps across India.
The report said, citing sources, that operators have started enforcing limits to manage rising demand and prevent stockouts.
While the company has not issued a formal directive, the report added that pump operators have implemented caps locally to curb panic buying as supply tightens.
A Reliance spokesperson told the publication that there is no official policy restricting purchases, but acknowledged that such instances could reflect “localised” situations.
Hormuz disruption ripples through India
The move comes as India grapples with the fallout of disruptions in the Strait of Hormuz, a critical route for global oil and gas shipments.
Although a fragile truce between the US and Iran is in place, tanker movement remains affected, and insurers continue to classify the region as high-risk.
India, the world’s third-largest oil consumer, imports more than 90% of its crude requirements, making it particularly vulnerable to supply shocks in the Persian Gulf.
First signs of rationing in retail market
Reliance’s action marks the first instance of fuel rationing by a major private retailer, going beyond price adjustments to directly limit consumption.
The company operates only about 2% of India’s more than 102,000 fuel stations, but the step signals growing stress in the market.
State-run firms, including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, have not announced official caps.
However, the report noted anecdotal instances of similar ₹1,000 limits at some outlets.
Price pressures and market losses
Other players have already responded through pricing.
Nayara Energy raised diesel and gasoline prices last month to reduce losses and moderate demand, according to local media reports.
The company is partly owned by Rosneft.
Fuel retailers in India are currently operating at a loss.
According to a post by the federal oil ministry on April 1, companies are losing ₹24.40 per litre on gasoline and ₹104.99 per litre on diesel.
While state-owned refiners last cut pump prices in March 2024 under government intervention, the current environment presents a more complex challenge, with both supply disruptions and pricing pressures at play.
Crude prices continue to remain volatile as markets weigh the duration of the Hormuz disruption against global inventories and the risk of renewed escalation.
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