UKRAINE WAR FALLOUT: ‘Oil companies reduce quota to fuel retail outlets’

Unusual rush witnessed at petrol stations in Kashmir
An an unusual rush was witnessed outside fuel outlets as the news spread across the country including Srinagar.
An an unusual rush was witnessed outside fuel outlets as the news spread across the country including Srinagar.Special arrangement

Srinagar: Oil Market Companies have reduced fuel supplies to retail outlets leading to an unusual rush of consumers across the Kashmir division.

A senior executive of OMC informed Greater Kashmir that there is no shortage of supply, “but they have been instructed to reduce the quota which used to supply retail outlets as these companies are incurring huge financial losses due to bulging crude oil prices.”

This has resulted in an unusual rush outside fuel outlets as the news spread across the country and also in Kashmir long queues were witnessed outside the petroleum outlets in Srinagar City.

“As I heard there is a fuel shortage, I rushed to petroleum station to get my car refuelled as I have to travel to South Kashmir daily for my job,” said Ajaz Ahmad, a Srinagar resident.

OMC executives informed that due to bulging crude oil prices, Ukraine- Russia War, oil companies are facing massive losses for the past some months.

“Russia is providing fuel supply to Indian Oil Corporation (IOC) at the discount of nearly 27 per cent, while others are incurring losses due to government decision to reduce prices,” they said.

The genesis of the problem as per reports is that the petroleum dealers are Petrol pump dealers in many states have complained that HPCL and BPCL are curtailing supplies despite paying in advance.

The government on Wednesday said that the production of petrol and diesel is “sufficient” to take care of any demand surge as the dealers across the country have been complaining about a shortage of key transport fuels.

The response from the Ministry of Petroleum & Gas (MoPNG) comes after reports emerged from petrol pump dealers, particularly Hindustan Petroleum Corporation and Bharat Petroleum Corporation, across the states complaining about the drastic curtailment of supplies despite payments being made in advance. Dealers also claimed that private OMCs too were curtailing supplies due to huge under-recoveries.

“The production of petrol and diesel in the country is more than sufficient to take care of any demand surge. This unprecedented growth has created some temporary logistics issues at the local level. Oil companies are geared up to tackle these issues by increasing the stocks at depots and terminals,” MoPNG said in a statement.

The statement added that provisions are also made to move extra tank trucks and lorries to serve the retail outlets, extended working hours of depots and terminals including at night to meet additional demand, and made provisions for more supplies in the affected states.

J&K’s FS&CA department officials also denied reports of fuel shortage. “ There is adequate supply available, don’t know why there is a rush outside petrol pumps.”

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