People fill petrol after increase of Rs 2.84 on petrol and Rs 2.86 on diesel at a filling station in Vijayawada on Monday. Photo | Prasant Madugula
Andhra Pradesh

Rigid fuel-rationing hits Andhra transport sector, dents State tax revenue

In a formal representation dated May 25, the Andhra Pradesh Lorry Owners’ Association (APLOA) said that petrol bunks across the state are refusing to fill truck diesel tanks, limiting supply strictly to partial fills.

S Guru Srikanth

VIJAYAWADA: A rigid fuel-rationing mechanism enforced by Oil Marketing Companies (OMCs) is severely disrupting Andhra Pradesh’s transport sector, while inadvertently draining the State’s tax exchequer.

By forcing long-haul trucks and interstate buses to operate on partial tanks due to a strict 200-litre single-transaction cap, the policy is driving fleet operators to refuel in neighbouring states, triggering widespread supply chain delays and a direct loss of fuel tax revenue for Andhra Pradesh.

In a formal representation dated May 25, the Andhra Pradesh Lorry Owners’ Association (APLOA) said that petrol bunks across the state are refusing to fill truck diesel tanks, limiting supply strictly to partial fills.

APLOA general secretary Y V Eswara Rao pointed out that the average fuel tank capacity of the majority of heavy vehicles, such as trucks and buses, stands well above 200 liters. Given that the average mileage of these heavy vehicles—especially trucks—is a meager 3 KMPL, a 200-liter cap proves to be a massive operational bottleneck.

“Under such circumstances, the 200-litre cap is proving to be a great inconvenience, especially for those transporting perishable cargo,” Rao explained, adding that they have complained to the Civil Supplies Commissioner that some fuel stations are turning vehicles away or refusing to provide even the baseline 200 litres. The restriction is causing severe delays in transport schedules, disrupting the broader supply chain, and plunging operators into financial distress.

The association warned that when long-haul vehicles are denied full tanks within Andhra Pradesh, they are compelled to refuel in neighbouring states, resulting in a direct loss of tax revenue to the state exchequer.

The Andhra Pradesh Federation of Petroleum Traders (APFPT), in a parallel letter, explained that dealers are in a helpless position as OMCs, particularly HPCL and BPCL, have weaponised their automated systems. If a dealer dispenses more than 200 liters in a single transaction, the system instantly blocks further sales and triggers punitive show-cause notices.

Speaking to the TNIE, APFPT president Raavi Gopala Krishna clarified that retail outlets are strictly adhering to an older directive that ambiguously mentions either a 200-litre cap per barrel or filling fitted tanks.

Dealers, fearing penalties, are enforcing the stricter interpretation.

Gopala Krishna noted that these restrictive measures were originally introduced during acute supply shortages, but with product availability now normalised, the association has formally requested their removal. Officials have sought a week to monitor the situation and assess the feasibility of lifting the cap.

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