The wide difference between the bulk and retail prices of diesel may push several State Road Transport Undertakings to start sourcing fuel from retail outlets instead of depots, although it is still too early to assess the impact on the various road bodies , official with the Association of State Road Transport Undertakings said.

Many SRTUs, such as the one in Bangalore are corporations that have put in place fare-revision mechanisms. Many of these road transport undertakings buy fuel from depots as well as retail outlets.

Fuel costs account for 31 per cent of total operating cost of the SRTUs. All the SRTUs put together spent Rs 11,153 crore on buying fuel and lubricants in fiscal 2011.

With the Government deciding to bring in dual pricing mechanism for diesel , buyers from depots will not get subsidised diesel and have to pay at least Rs 10 more compared with those who buy from retail outlets. Earlier, the product at the depot was sold to bulk consumers at around the same rates as retail outlets; the only difference was that at the depot no dealer commission was charged, an oil company official said.

Now , many de-facto bulk buyers – such as truckers and road transporters – may have to purchase the fuel from retail outlets .

> mamuni.das@thehindu.co.in

> richa.mishra@thehindu.co.in

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