Bulk Consumers Shifting to Retail Pumps Behind Surge in Fuel Demand
Govt says supplies remain stable despite higher demand and dry-out fears at some pumps
New Delhi: Despite the government’s repeated claims that supplies remain ample and stable across the country, there is a sharp shift by bulk diesel consumers to retail petrol pumps as a Rs 40-42 per litre price gap has led to a surge in fuel demand at some locations in India.
“Demand at some petrol pumps has risen 20-30 per cent, driven partly by the agricultural season and partly by bulk consumers moving purchases to retail pumps. This is primarily why a few petrol pumps in some areas are facing a dry-out-like situation. The price difference between diesel for bulk sales and that available at petrol pumps is Rs 40-42 per litre, said Sujata Sharma, joint secretary in the Ministry of Petroleum and Natural Gas.
The comments of the official come amid concerns over fuel supplies following disruptions linked to the West Asia crisis. “The government of India has taken all possible steps to ensure that common people are inconvenienced the least. India has sufficient supplies of crude oil, petrol, diesel and LPG, while refineries are operating at 'optimum capacity' to meet domestic demand,” Sharma said.
While petrol pumps serve fuel to cars and two-wheelers, bulk buyers such as state road transport buses and telecom towers using diesel in power gensets are supposed to purchase the fuel from bulk supply points. Fuel at petrol pumps is being sold at rates below cost, while bulk supplies are normally at market price.
Sharma further said that higher demand was also being seen at state-run fuel stations because of lower prices compared with private retailers. “Petrol pumps generally have stocks of two to three days, and if they see 20-30 per cent growth in demand, they may temporarily face some issues. After all, there are last-mile logistics issues in reaching fuel,” she added.
The official also said that the government was closely monitoring supplies at outlets witnessing unusually high demand and coordinating with state administrations and local police wherever required. “There is no issue in product supply. I would again appeal that citizens should not resort to panic buying and should not believe rumours. They should purchase as per the need,” she said.
