No shortage yet in TN petrol pumps, but inventory window shrinks

Many retail outlets were currently operating with only one to two days of inventory because of restricted supply allocation, increased monitoring and faster stock movement.
Vehicles line up at a petrol bunk in Tiruchy on Monday.
Vehicles line up at a petrol bunk in Tiruchy on Monday.(Photo | MK Ashok Kumar)
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TIRUCHY: Even as public sector oil marketing companies (OMCs) assured uninterrupted fuel supply and appealed against panic buying amid the fourth fuel price increase in 10 days, fuel dealers across Tamil Nadu said stock cycles had tightened over the past week.

Dealers maintained that fuel availability remained stable and there was no immediate shortage. However, many retail outlets were currently operating with only one to two days of inventory because of restricted supply allocation, increased monitoring and faster stock movement. Regular replenishment from oil companies, they said, continued without disruption.

Under normal conditions, a mid-sized fuel station with a combined storage capacity of around 80,000 litres of petrol and diesel typically maintains 50,000–60,000 litres in stock, with at least 10,000 litres held as reserve. Dealers claimed several outlets were now functioning with inventories of only 20,000–25,000 litres.

Sources said the Tamil Nadu Petroleum Dealers Association (TNPDA) had advised district units to report any supply-related concerns to the respective oil companies and share updates with the state-level association.

Speaking to TNIE, TNPDA president KP Murali said PSU oil companies were ensuring that no outlet faced prolonged dry hours. “We are receiving limited supplies so that stocks can be distributed evenly among all dealers.

Larger dealers may feel the pressure more because smaller dealers usually operate with lower inventory levels. There is no panic buying, even in Chennai. However, if reduced inflows continue, the situation may become challenging in the coming days,” he said.

V Saravanan, a fuel dealer from Tiruchy, said stock cycles had visibly shortened over the last week. “Stocks are available, but replenishment intervals have changed. PSU companies are closely monitoring consumption patterns,” he said.

A dealer from Madurai said some outlets had briefly run dry on Monday after failing to adjust to the shorter stock cycle.

Petrol prices in TN stood at around Rs 107 per litre and diesel at Rs 99 per litre on Monday, marking cumulative increases of nearly Rs 5–Rs 7 per litre over the last 10 days.

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