As the central government increased the price of petrol and diesel by Rs 3 per litre on Friday, the Consortium of Indian Petroleum Dealers'Association wrote a letter to Oil Marketing Companies (OMCs) highlighting operational issues that retailers were facing.

According to the letter, OMCs are pressuring retailers to sell premium petrol rather than regular petrol. Customers are burdened and shops are not allowed to lawfully refuse to supply regular petrol to customers.

It further stated that while OMCs stressed that there isn't petrol shortage, limiting the sale of regular petrol runs contrary to the claim.

Additionally, it stated that the dealers were being wrongfully pressured by the regional offices of OMCs to deliver premium petrol rather than regular petrol. It claimed that end users were suffering financial losses as a result of OMCs' violations of the Essential Commodities Act.

All three of the major oil firms, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL), had increased premium petrol prices prior to the increase in retail fuel prices in March.

Previously, on Wednesday, the Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday said the long-running dispute in the Middle East would cause fuel prices to rise in India.

"If the Middle East conflict continues, the government may have to raise fuel prices. Since the government has adopted fiscally prudent policies, it is "only a matter of time" before higher oil prices are passed on more fully," Malhotra had said.