India's state-owned fuel retailers seek advance payments from dealers as global price surges

New Delhi: Indian state-owned fuel ​retailers are seeking ​advance payments for gasoline and gasoil ​supplied to fuel pumps nationwide, dealers said, as the companies are suffering significant revenue losses from retail sales.

About 90% ‌of the ⁠country's ⁠101,470 retail fuel stations are linked to state refiners and retailer Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp.

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Indian refiners, hit hard by a declining rupee, are facing revenue losses from retail sales ​as cracks for gasoline and ⁠gasoil surged ‌to multi-year highs.

India has not raised the retail prices of gasoline and gasoil to ⁠shield consumers despite a surge in global oil prices to over $100 per barrel as the supplies through the Strait of Hormuz are disrupted by the US-Israeli war on Iran.

The three fuel retailers did not respond to Reuters email seeking comments.

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The state refiners were ‌previously giving a five-day credit to the dealers for the sale of gasoline and ​gasoil, dealers ​said.

"Dealers are ⁠very upset because we also run our business on credit, and some dealers sell fuel to the ​clients, such as government departments and transporters, on a credit basis," said Ajay Bansal, President of All India Petroleum Dealers Association, which represents about 92,000 fuel stations in the country.