Internal credit dispute between OMCs, petrol pump owners spurs fuel crisis in Hyderabad

Hyderabad: Internal credit dispute between Oil Marketing Companies (OMCs) and petrol pump owners have spurred a fuel crisis in Hyderabad.

Several petrol bunks across the city have gone dry, leading to massive crowds at operational stations. Talking to NewsMeter, Vinay Kumar, former general secretary of Petrol Pump Association (PPA), clarified earlier that there is ample fuel stock available in the state.

Dealers mentioned that an internal dispute that occurred due to a policy change from the Oil companies is the real culprit behind the temporary fuel crisis in the city.

Policy change led to a fuel crisis

The primary reason for the dry-outs is a sudden shift in the payment policy by oil companies like HPCL ( Hindustan Petroleum Corporation Limited), BPCL ( Bharat Petroleum Corporation Limited), and IOCL ( Indian Oil Corporation Limited).

Previously, these companies provided fuel on a credit basis, allowing the dealers and petrol bunk a window to pay after delivery.

Now, the oil companies are demanding advance payments before any fuel is released.

High demand leading to imbalance

Meanwhile, when one bunk shuts down due to payment issues, the demand shifts to the neighboring station. This sudden surge causes the operational bunk to exhaust its 24-hour stock in just 5-6 hours, leading to city-wide dry out of petrol.

This policy change has caused a severe imbalance across the city. Many petrol bunks have been forced to stay empty because they cannot meet the new upfront payment demands.

Meanwhile, the few bunks that managed to secure stock are seeing massive crowds and long queues, with fuel running out almost as soon as it arrives.

Dealers reiterate that while the public is facing significant inconvenience and traffic congestion is mounting, there is no actual shortage of fuel in the city or the state.

The crisis is purely administrative and financial, stemming from the sudden change in how oil companies and banks are handling payments.

The Civil Supplies Department of the Telangana state government also clarified that there is no shortage of petrol reserves in the state.

'False and misleading news' further increasing the crisis

Meanwhile, the Telangana Petroleum Dealers Association (TPDA) has also clarified that the current disruption at fuel stations is primarily driven by "false and misleading news" regarding a fuel shortage. According to TPDA President Marri Amarender Reddy, this misinformation has triggered widespread panic buying, causing an abnormal surge in sales that is nearly 2.5 to 3 times higher than normal levels.

The Association further assured the public that there is absolutely no shortage of fuel in the state or the country. They confirmed that adequate stock is currently available with all major Oil Marketing Companies, including HPCL, IOCL, and BPCL.

The TPDA has urged citizens not to believe or spread fake news, stating that the depletion of fuel at certain stations is merely a result of the unprecedented rush and not a lack of supply from the depots.

Official Safety Advisory

In an important safety notice, the TPDA warned motorists that carrying petrol or diesel in cans or unauthorized containers for storage is strictly against PESO (Petroleum and Explosives Safety Organization) norms. The association highlighted that improper storage of fuel poses a serious fire risk and creates hazardous situations for the public.

They have requested all citizens to act responsibly by avoiding panic buying and purchasing fuel only as per their regular needs to ensure the safety and convenience of everyone in the city.