Several petrol pumps in Hyderabad and many parts of Telangana shut their operations on Wednesday due to depletion of stocks in the wake of panic buying of fuel by consumers in the last two days, people familiar with the matter said. No stock board at a petrol pump in Hyderabad. (HT)
Long queues of vehicles were witnessed at several petrol pumps, while “no-stock” boards were put up at many other bunks due to non-arrival of stocks on time. The disruption led to a surge in demand at operational fuel stations, with stock at some pumps getting exhausted within a single day.
In areas such as SR Nagar and Ameerpet, hundreds of auto rickshaws were seen lined up at fuel stations throughout the day. The situation also affected public transport availability, leaving passengers stranded as fewer autos were available on the roads.
The rush at the petrol pumps began on Tuesday evening and continued until late into the night, with cars, buses heading to distant destinations and two-wheelers adding to the congestion. At many places, people were seen buying petrol in bottles, cans and other containers as a precautionary measure.
According to a petrol pump dealer, who pleaded anonymity, the crisis began a couple of days ago, after oil marketing companies introduced stricter payment conditions for fuel supply. “Till the other day, oil companies had supplied petrol and diesel on a short credit basis, allowing dealers to make payments one or two days after receiving stock. This arrangement helped us manage operations smoothly,” he said.
Now, oil firms are said to have insisted that dealers should clear previous dues and make advance payment for fresh stock before supplies are released. As a result, fuel supply to several outlets was reportedly disrupted, forcing many pumps to temporarily shut down.
“Over the past two days, several fuel stations in different parts of the city remained closed intermittently, while those with available stock witnessed heavy rush and rapid depletion,” he said.
Hyderabad police commissioner V C Sajjannar said the authorities were in constant touch with oil companies to see that fuel supply across the city was continuing without major interruption.
He said the sudden spike in demand was caused largely by panic buying, with motorists rushing to fuel stations and filling up full tanks at once. “This has led to temporary “No Stock” boards being displayed at some pumps, which should not be mistaken for an actual fuel shortage,” he said.
Sajjannar said that due to misinformation, fuel sales within the Hyderabad Commissionerate limits rose sharply in recent days. “While 3,024 kilolitres of fuel were sold on March 22, the figure reportedly doubled to 6,400 kilolitres on March 23, indicating panic-driven demand,” he said.
Police also warned against the illegal sale of loose petrol or diesel in bottles and cans, stating that strict legal action would be taken against violators.
He added that the situation at all 240 petrol pumps under the Commissionerate limits was being continuously monitored in coordination with Civil Supplies and Revenue Department officials.
Telangana Petroleum Dealers Association president Marri Amarender Reddy issued a statement saying many people are rushing to fuel stations and filling their tanks unnecessarily due to the circulation of false and misleading news regarding a fuel shortage.
“This panic buying has led to an abnormal surge in sales nearly 2.5 to 3 times the normal levels resulting in temporary stock exhaustion at several retail outlets across the country,” he said.
Reddy clarified that there was no shortage of fuel supplies from il companies and supply chains are functioning normally. “Carrying petrol or diesel in cans for storage is against safety norms, as improper storage of fuel can lead to hazardous/situations, including fire accidents,” he said.
State civil supplies minister N Uttam Kumar Reddy held an emergency meeting to take stock of the situation along with civil supplies commissioner Stephen Ravindra. Speaking to reporters later, the minister categorically asserted that stocks are more than adequate for the next three months and that supply is currently running well ahead of demand.
“Oil companies — Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have ramped up supplies significantly. As on Wednesday, against a demand of 17,246 kilolitres (KL), the companies supplied 17,898 KL, leaving an excess of nearly 652 KL,” he said.
He pointed out that while daily demand has suddenly spiked by 25% due to panic buying, supplies have been maintained at 22% above the average, ensuring seamless availability.
He said an additional 16,000 KL of buffer stock has already been arranged and 1,200 extra tankers have been pressed into service to keep fuel stations fully stocked. Any temporary “no stock” boards visible at a few outlets were only because tankers had not yet arrived and not due to any actual shortage, Reddy added.