Nayara rolls out relief for dealers amid retail pain

Mumbai: Rosneft-owned Nayara Energy has launched an incentive scheme for fuel retailers to compensate them for unsold petrol and diesel volumes as the company grapples with mounting retail losses amid supply shortages and widening price gaps with state-run oil marketing companies, according to Nayara dealers.

The support is aimed at partially offsetting operational expenses and revenue losses faced by retailers.

Explaining the mechanism, a dealer said the company compares current sales with historical averages.


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"Last May I sold 105 kilolitres (KL), but this month, because fuel supplies were disrupted, I sold only 60 KL. The company is compensating the commission on the remaining 45 KL," the dealer said, adding that Nayara is losing nearly ₹30 per litre on fuel sales and the compensation is linked to standard dealer commissions of ₹3.50-₹3.80 per litre. The company is compensating dealers retrospectively for April sales.

Nayara Energy did not respond to an email query sent on Tuesday.

Private fuel retailers have struggled to compete with PSU OMCs, which have kept pump prices relatively lower. Dealers said Nayara's petrol prices are currently about ₹5 per litre higher than PSU outlets.