Hyderabad: Long queues formed outside petrol pumps across Hyderabad on Monday, April 27, with several stations running dry. But according to the Telangana Civil Supplies Department, the state has no actual fuel shortage. So what is going on?
It started with panic, not a supply crisis
The immediate trigger was a wave of rumours circulating about uncertainty in global oil markets, driven largely by fears over the ongoing conflict involving the US, Israel and Iran. The anxiety centred on Indian oil vessels struck in the Strait of Hormuz, disrupting supplies.
That fear, however, is unverified, but it was enough to send residents scrambling to petrol pumps with cans and containers, rapidly depleting stations that would otherwise have managed the day’s demand comfortably.
Even temperatures crossing 40 degrees Celsius did not deter people from standing in queues for hours. At the Hindustan Petroleum bunk in Tolichowki, the rush was such that police personnel had to be stationed to prevent any untoward incidents.
Rehan, a customer there, arrived with a 30-litre can to stock up diesel for his vehicles. “All the petrol bunks in Langar Houz and Shaikpet were closed, so I thought it would be better to stock up on diesel so that my vehicles stayed on the roads,” he told Siasat.com, adding that he had five running vehicles to keep fuelled.
Right beside the bunk, a restaurant staff member was overheard telling a customer to fill up immediately, warning that “no fuel would be available after 5 pm.”
A credit policy change made things worse
Alongside the panic buying, a structural issue has compounded the crunch. An attendant at the Bharat Petroleum station at Liberty X Roads told Siasat.com that his station typically sells one full tanker, roughly 20,000 litres, per day. On Monday, panic buyers emptied it well before the day was done.
“People are worried about what will happen if suddenly one of the Indian vessels carrying oil is bombed on the Strait of Hormuz,” he said.
He also pointed to a change in oil company credit policy as a compounding factor. “Most of the smaller bunks going out of stock are those who have been finding it difficult to pay, while the bigger bunks with high turnaround are paying,” he said, explaining that oil marketing companies were now asking pump owners to pay tens of lakhs in advance to receive deliveries.
Situation in Andhra Pradesh is more acute
While Hyderabad saw spot shortages, the problem was more severe in neighbouring Andhra Pradesh. A petroleum bunk dealers’ association leader in Amaravati told Siasat.com that around 2,000 of the state’s 4,510 petrol bunks had run out of stock over the weekend, attributing it to the revised credit policy, some bunks claiming excess quota and unequal delivery of tankers from depots.
The issue was largely resolved after an emergency Zoom meeting convened by the Civil Supplies Department, attended by police, legal metrology officials and District Collectors.
Chief Minister N Chandrababu Naidu, who held a separate meeting with officials after 241 bunks were reported dry, even as the state was receiving 10 per cent more fuel than usual, said the problem was primarily one of panic buying. “In a couple of days, things could come to normalcy,” he said.
What the Telangana government says
The Telangana Civil Supplies Department maintained that supply levels remained robust, with 7,443 kilolitres of petrol and 11,081 kilolitres of diesel – totalling over 18,500 kilolitres – supplied to the state as of 4 pm on Monday. The department said existing stocks were sufficient to cover 40 to 45 days of normal demand.
“Any attempts to create artificial scarcity, hoard fuel, or spread panic will be dealt with strictly under the law,” the department warned in a statement, urging residents to call helpline number 1967 to report unauthorised stockpiling.
This has happened before
Monday’s scenes were not unprecedented. A near-identical situation unfolded in March when the Iran conflict first escalated. As rumours spread, bunks ran dry and out-of-stock boards went up across the city. That episode was resolved after the Civil Supplies Department held meetings with oil marketing companies and petrol bunk associations.
Officials expect a similar resolution this time.
| Posted by Vivek Bhoomi | 
