Hyderabad, June 29: Fuel outlets throughout the state are experiencing a diesel shortage, with approximately 30% less stock on hand than usual.
In general, the stock available in the state can meet fuel demand for 10 to 15 days, but diesel will only be sufficient for the next three to four days, according to members of the Telangana Petroleum Dealers Association (TPDA).
“There is a diesel shortage, and we are preparing a plan to deal with it.” The issue should be addressed by the Centre, according to TPDA president M Amarender Reddy.
Rajiv Amaram, joint secretary of the All India Consortium of Indian Petroleum Dealers, echoed his sentiments, saying that immediate action was required to meet the State’s fuel requirements in the coming days. The shortage was caused by an increase in bulk supply rates of diesel, which had been raised by around Rs 22 per litre as part of the regular price fluctuation.
According to the dealers, the oil companies increased the bulk supply rate as the price per barrel increased due to a variety of international and domestic market conditions. Furthermore, the oil companies that used to supply fuel at a lower cost to bulk buyers such as industries and the Telangana State Road Transport Corporation, among others, have reversed the discount and raised the price.
All of these factors contributed to bulk buyers relying on dealers rather than oil companies to obtain diesel, resulting in a diesel shortage in the state. Another factor contributing to the shortage was that oil companies demanded advance payment from dealers.
Previously, payment was made on the day the stock was delivered, and some dealers were also given credit. However, oil companies were now demanding payment three to four days before delivery, causing some dealers to be unable to obtain diesel.
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