Reliance Industries Ltd-owned fuel retail outlets have threatened to launch an indefinite strike from Thursday protesting against the huge losses due to decrease in demand of its fuel.
"All the 1,200 retail outlets have threatened to go on an indefinite strike from Thursday protesting against the mounting losses due to decreasing demand for Reliance fuels," industry sources said.
Reliance had two months ago hiked the prices of petrol and diesel by Rs 2.5 per litre to offset the huge losses incurred.
This has resulted in a decrease in demand.
"Diesel sales have dropped by almost 20 per cent of the actual and has caused huge losses to both petrol pump dealers and truck operators," they said.
Oil marketing companies are forced to sell petrol, diesel, kerosene and LPG below the production cost resulting in huge losses to the companies.
Public sector oil companies are compensated for the losses through a combination of discounts from upstream companies like ONGC and oil bonds.
Private oil companies like Reliance, are however, denied any compensation and made to bear the brunt of the losses on their own.
"This has resulted in huge losses to the private oil companies," the sources said.
Despite the hike in its retail prices, RIL is losing Rs 3.39 a litre on petrol and Rs 5.77 per litre on diesel.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
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