HYDERABAD: Petrol and diesel dealers in Hyderabad on Wednesday blamed a credit stand-off with oil companies for the shortage of fuel at many pumps amid panic buying by consumers. Despite assurances from IOCL, HPCL and BPCL about adequate fuel stock, 40% of pumps in the city ran dry, claimed dealers.The disruption, they alleged, was not due to shortage of fuel but due to financial constraints faced by dealers in making payments to the companies. The situation was worsened by panic buying. Oil companies, however, maintained that credit facilities were never uniform and were extended selectively based on a dealer’s financial credibility and transaction history. They also indicated that the disruption was temporary and that fuel supply was expected to stabilise by Thursday evening. According to the dealers, oil companies had stopped supplying fuel to outlets that were either unable to clear payments on the same day or were unable to make advance payments.
“Earlier, dealers were given a credit window of up to two days, but they are now required to pay in advance before fuel is dispatched. Even when we are ready to make advance payments, supplies are not being sent for reasons unknown,” M Amarender Reddy, Telangana Petroleum Dealers Association, told TOI . K Rajashekhar Reddy, president, Telangana Petroleum Tank Trucks Owners’ Association, said that until recently, dealers were allowed credit facilities of up to ₹1 crore, but this had been stopped, with supplies halted over the past two days.
The situation was worsened by consecutive bank holidays. “Typically, dealers need Rs 20 lakh to Rs 40 lakh to procure fuel loads. With limited access to funds, payments are getting delayed, which is tightening supply,” said Rajiv Amaram, joint secretary (south) of the Consortium of Indian Petroleum Dealers.“Given the financial pressures and higher crude sourcing costs, extending multi-day credit is not feasible. Payments need to be made on a near-daily basis,” said a state coordinator representing the oil companies, and is an official with HPCL.“All petroleum terminals and supply points are fully stocked, and fuel supplies are continuing smoothly. Unusual surge in fuel purchases has occurred due to panic buying, which temporarily impacted availability at a few retail outlets,” said the three oil companies in a joint statement.
