Some petrol pumps in states like Madhya Pradesh, Rajasthan and Karnataka have dried up following a sudden surge in demand for PSU outlets, which were followed by cuts in operations by private fuel retailers trying to compete with huge losses. To check for heavy damages. Rates of Public Sector Companies The government, however, maintained that there was sufficient supply of petrol and diesel to meet the additional demand, but acknowledged that there were delays due to overcrowding in PSU bunks and increased waiting times for customers. .
PSU fuel retailers IndianOil, HPCL and BPCL have not raised petrol and diesel prices coupled with increase in crude oil (cost of raw material). They sell petrol at a loss of Rs 14-18 per liter and diesel at Rs 20-25 – a loss that private retailers Naira Energy, Jio-bp and Shell have not been able to absorb. Some petrol pumps of Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) in states like Rajasthan and Madhya Pradesh ran out of fuel, especially diesel, after customers from private retailers shifted.
HPCL in a tweet said that its pumps in Rajasthan saw an increase of around 41 per cent in petrol sales and 32 per cent in diesel in May compared to the previous month, while sales of private companies declined by 10.5 per cent and 30 per cent, respectively. . Petrol sales in Madhya Pradesh increased by 40.6 per cent and diesel by 46.1 per cent, while private fuel retailers declined by 4.3 per cent and 29.5 per cent.
BPCL has also seen a similar jump in these states. “In the last few days, there has been a major increase in incidents of congestion at PSU retail outlets (petrol pumps) in some areas, leading to delays and increase in waiting time for customers. This, in turn, has given rise to speculations of supply constraints by the public sector oil marketing companies,” the oil ministry said in a statement.
At specific locations in some states, the demand for petrol and diesel has increased by 50 per cent in the first half of June as compared to the corresponding period of the previous year. “Notably, it has been observed in Rajasthan, Madhya Pradesh and Karnataka,” it said. “These are states where large quantities of supplies were being made by retail outlets belonging to private marketing companies and where the distance from the supply locations i.e. terminals and depots is long.” The ministry attributed the increase in demand to seasonal spurts on account of agricultural activities, bulk buyers shifting their purchases to petrol pumps and a sharp drop in sales by private firms, whose volumes shifted to PSU bunks.
However, it did not explain why the bulk buyers shifted or the reasons for the reduction in sales by private firms. Industry sources said while petrol pump prices have not increased commensurate with the cost, the price has gone up for bulk buyers like state bus undertakings. And hence the bulk buyers find it cheaper to fill up at petrol pumps than to buy directly from the oil companies.
“The production of petrol and diesel in the country is more than enough to take care of any increase in demand. This phenomenal growth has led to some temporary logistics issues at the local level. “Oil companies have geared up to tackle these issues by increasing stock at depots and terminals, additional movement of tank trucks and lorries to serve retail outlets; Extended working hours of depots and terminals including night and provision of additional quantity of fuel for supply to the affected states.
It added that the companies are ensuring adequate supply of petrol and diesel to meet this additional demand and they are committed to meet the energy needs of the country. “There has been an unprecedented increase in the demand for petrol and diesel at retail outlets in some states,” HPCL said in a tweet. “We assure everyone that there is sufficient petrol and diesel stock for uninterrupted supply to our retail network in all markets.” It posted the numbers attributable to increase in demand for petrol and diesel and decrease in sales by private companies at its petrol pumps in Rajasthan and Madhya Pradesh.
“We are committed to serving our esteemed customers at all times. There is no need to panic,” it added. IOC Director (Marketing) said in a tweet: “We reiterate that there is adequate product availability and supply to retail outlets is being met as per demand. Request not to panic at all. We are at all times without any interruption. Assure our full commitment to serve you.” BPCL said that the quantity of petrol and diesel at its outlets in Rajasthan has increased by 63 per cent in the first fortnight of June. Volume jumped 43 per cent in Madhya Pradesh.
BPCL said in a tweet, “This is also due to lack of supply at fuel stations of private marketing companies or shifting of customers due to high prices.” “We assure everyone that there is adequate product availability and supply on our network across all markets and request you not to panic. We are committed to serve all our customers at all our fuel stations.” ,
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