BENGALURU: Fears of a hike in petrol and diesel prices triggered panic buying across Karnataka, resulting in a sharp spurt in sales. Oil companies recorded a 60 per cent hike in sales over the past 72 hours. While the Russia-Ukraine war has impacted crude oil prices, the government-held domestic rates steady due to political compulsions. With election results to five state assemblies out on Thursday, there is anxiety that the government may increase fuel prices to more realistic levels.
BR Ravindranath, former Petroleum Dealer Association president, told TNIE that bunks have been recording a sharp increase in petrol and diesel sales through Sunday, Monday and Tuesday. This was also confirmed by IOC Executive Director DL Pramodh. Meanwhile, many dealers complained that they were forced to put up ‘No Stock’ boards on Tuesday because two oil companies -- HPCL and BPCL -- are not supplying the required stocks, raising suspicions that the companies are hoarding. The oil firms are playing dirty to make profits when prices are hiked, they said.
Karnataka Petroleum Dealers Association president Dr Balaji Rao confirmed this, “Dealers have complained about Hindustan Petroleum and Bharat Petroleum not giving stocks to dealers, which is not fair at a time like this.’’
Many dealers are expecting prices to go up sharply over the next few days. They said they had incurred losses of Rs 6lakh to Rs 10lakh when prices were cut a few months ago by both the central and state governments. Experts say when international crude prices were hovering around $70 a barrel, domestic petrol and diesel prices were around Rs 100, before the price cut. With international rates touching $130 a barrel, the expected price hike could burn a big hole in the pocket. There is also the fear that if Russian crude is banned, prices could zoom past $250 per barrel.