Are we heading for fuel crisis?

It?s alarming now. There are reports of oil shortage coming in from some parts of the country.

And what?s worse is it?s only the tip of the iceberg. With soaring international crude prices, bleeding oil marketing companies (OMC) Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) have sent out a missive to petrol pumps across the country that they will not import until and unless there is an emergency. Besides, these companies have decided to close down with immediate effect loyalty and discount programmes offered to consumers. On top of it, the present crisis has forced these oil marketing companies (OMCs) to immediately stop advertisements ? both print and media.

The OMC’s inability to maintain supplies has forced to closure of some of the petrol pumps in various parts of Maharashtra. At present, petrol pumps in Nashik, Sangli, Kolhapur, Nanded, parts of Marathwada and Vidarbha have put up notice boards declaring that they were unable to provide petrol and diesel due to non-receipt of regular supplies from OMCs.

In some cases, petrol dealers have started providing petrol and diesel in a limited quantity to vehicle owners against their requirement while some of them have been providing auto fuel after certain intervals. In Navi Mumbai, dealers have facing fuel scarcity and thus have been forced to sell it in a limited quantity to vehicle owners. Similarly, serpentine queues were seen in Nashik which is fast growing industrial city.

Interestingly, Mumbai is for been spared by OMCs. There are in all 256 pumps in Mumbai and 2,700 pumps in rest of Maharashtra. Of the 2,700 pumps, 500 pumps have been either closed down or started rationing of auto fuel. Monthly sales of petrol in Mumbai pumps is of the order of 5.63 crore litreand diesel 4.60 crore litre. In the case of rest of Maharashtra, dealers sell 62.10 crore litre of diesel and 40.50 crore litre of petrol. State government sources said they would take adequate measures to avoid hoarding of auto fuel.

An officer bearer of the petrol dealers association told FE, ?This a reality that dealers have closed down pumps due to non-availability of fuel. Due to the stoppage of imports by OMCs, dealers are not getting their quota and they have no alternative but to close down pumps. This is causing inconvenience to the vehicle owners but dealers cannot help as they have to fuel to supply. In the sugar-rich Sangli, Islampur, Kolhapur region, some petrol pumps have been closed since last four days or in some cases vehicle owners have to satisfy on less quantity of fuel. ?

Ravi Shinde, president of Mumbai Petrol Dealers Association said ?Vehicle owners in Mumbai so far have yet to face the brunt though the situation is alarming in various parts of Maharashtra. The closure of petrol pumps is largely due to the arm-twisting tactics adopted by the OMCs to drive their point in with the Centre. Though petrol pump dealers have full sympathy with the OMCs, they are not in a position to support such tactics. Besides, the dealers have to take care of their pumps as non-availability of auto fuel may lead to a law and order problem.?

Shinde admitted that this was for the first time such a situation has arisen and hoped that the centre would soon come out with a bail out package for OMCs.

The pinch is being felt in Tamil Nadu as well, as companies have been cutting down the supply of products to retail outlets. Even here, the capital city has not been impacted, but other parts have been. ?We are not facing any shortage of either petrol or diesel as of now. However, there are rumours that petroleum companies may tighten the supply to reduce the losses?, a proprietor of retail outlet said on conditions of anonymity.

He, however, said the oil companies might be supplying less quantity of the fuel in the semi urban and rural areas to reduce losses. Also, the supply of the popular lower quality petrol and diesel has been reportedly affected to a great extent, while the supply of premium quality fuels, which are not in much demand with customers are not affected, sources said. Retail dealers are reportedly not buying the high quality fuels because of lack of demand.

Transporters have also warned that fuel scarcity could have an adverse impact on the commodities prices.

?Our vehicles across the state are getting only about 70% of the fuel and as a result of which they are being delayed (to reach destinations),? Prakash Gavali, president of the Maharashtra Rajya Truck Tempo Tankers Bus Vahtuk Mahasangh, which represents transporters, said.

?Due to lack of fuel supply, our vehicles are forced to make more stops and spend more time in queues at petrol and diesel pumps which increases operating costs,? he said, adding it would lead to a rise in prices of commodities.

He also alleged that vehicles were also being denied fuel at various locations across the state.