HYDERABAD: “There is no immediate shortage. The problem is panic buying. People are topping up more than usual, fearing scarcity, which is accelerating the depletion at outlets,” Kuldeep, a staff member at a petrol bunk in Paradise, told the TNIE on Monday.
He was responding to a query on longer queues at several petrol stations in Hyderabad in recent days. A closer look into the development revealed that the problem is due to temporary disruptions linked to a change in payment terms by oil marketing companies (OMCs). Dealers said supplies remain adequate overall, but local constraints and increased demand have led to delays at some outlets.
India’s three state-run fuel retailers — Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum — have shifted from credit-based supply to advance payments for dealers. HPCL and BPCL began enforcing upfront payments last week, while IOCL ended its five-day revolving credit facility earlier this week.
The change has required dealers to arrange larger funds at short notice, affecting supply schedules at some pumps.
“Earlier, we had some flexibility. Even if we made payments by noon, supplies would be dispatched. Now, the entire amount has to be paid in advance and credited by 2.30 pm, the same day. It is extremely difficult to arrange such huge sums overnight,” Marri Amarender Reddy, president of the Telangana Petroleum Dealers Association, told TNIE.
He added, “We cannot suddenly arrange Rs 50 lakh or more as advance payment. Dealers are already under financial stress, and margins have not increased for around eight years. Overnight, we are expected to pay double — both for existing dues and fresh stock. It is simply not sustainable.”
Dealers said the situation was compounded by depot closures over the weekend. “Last week, depots remained closed for two days. Naturally, outlets started running dry. Even a short disruption like that creates a cascading effect,” he noted.
According to the association, national fuel reserves typically cover 60 to 90 days, indicating no structural shortage. However, logistical constraints and reduced imports have affected around 30% of supply, while demand has risen by nearly 50–60% in recent days.
The association said the move by OMCs may be aimed at limiting financial exposure. “Indirectly, companies are trying to reduce their losses. Fuel prices have not been increased despite rising costs, possibly due to broader considerations. So, they are tightening credit to safeguard their margins,” he alleged, terming it a “game plan”.
With reports of closures and queues, more motorists have been topping up fuel, adding pressure on retail outlets.
The Telangana Petroleum Dealers Association has written to oil companies seeking temporary restoration of credit facilities to ease matters for dealers and consumers.
PANIC BUYING LEADS TO RUSH
Sangareddy: Consumers from villages around Sangareddy thronged agencies in large numbers on Monday amid rumours of an LPG shortage linked to the ongoing war. With delivery vehicles not reaching villages for nearly 15 days, many consumers transported cylinders on motorcycles to LPG godowns. At Vinay Gas Agency, officials released cylinders only after verifying booking dates.
Ramesh, a resident of Tallapalli, said deliveries that earlier took two to three days had not reached his village for over two weeks. A consumer from Angadipeta questioned official claims of adequate supply, saying the ground situation suggested otherwise. Consumers alleged that some agencies were diverting domestic cylinders to hotels and tiffin centres for higher prices instead of supplying commercial cylinders.
They also claimed that an additional `40 per cylinder was being collected. Civil Supplies officials recently conducted raids in Siddipet and seized 40 domestic cylinders from hotels, while a similar action in Narsapur, Medak district, led to the seizure of about 20 cylinders. Despite the rush, officials maintained there was no shortage, attributing the surge to panic buying, with 400 to 500 bookings being made online in a single day. District Civil Supplies Officer Bala Sundari said that cylinders would be supplied in sequence and urged consumers not to panic or travel long distances to procure them.