Reliance Ind to suspend petrol retail outlets

New Delhi, Mar 25 (UNI) Mukesh Ambani-promoted Reliance Industries Ltd (RIL) may suspend a major part of its 1,400 petrol outlets across the country to press for its demand for compensation from the government against mounting losses due to increasing global crude prices.

''This is a token gesture...The dealership will not be affected,'' a source close to the development told UNI.

Denying earlier reports stating that the petrol pumps will be closed, the source added, ''it is only a temporary measure and will resume functioning after sometime.'' The company suffered huge losses despite selling petrol and diesel at prices higher than the state-run retailers Indian Oil, Hindustan Petroleum and Bharat Petroleum.

On an average, petrol from Reliance outlets costed between Rs four and Rs five a litre more than the PSU pumps.

Reliance still lost Rs 3.40 a litre on petrol and Rs 5.80 per litre on diesel.

Public sector retailers too lose Rs 10.93 on sale of every litre of petrol and Rs 14.66 per litre on diesel but the losses are made up by issue of oil bonds by the government.

The source said the same compensation is not given to the private retailers like Reliance and Essar.

UNI MP/RT PDT RK1951