Hyderabad: The heavy rush seen at fuel stations across Hyderabad over the past few days has begun to ease, with shorter queues and fewer vehicles now being reported at petrol pumps across key areas of the city on Friday, March 27.
Localities including Somajiguda, Panjagutta, Banjara Hills and Lakdikapul witnessed a visible decline in crowding at fuel stations on Friday, following days of extreme rush and long waiting lines.
Panic buying despite assurances
The surge in demand earlier in the week was driven by panic buying, even as both state and central governments issued assurances that there was no shortage of fuel. The rush led to long queues and heavy crowding at petrol pumps across the city.
Rush declines across key localities
The number of vehicles at multiple petrol stations across Somajiguda, Panjagutta, Banjara Hills and Lakdikapul was noticeably lower, indicating a drop in demand after the recent surge. Petrol pumps in these areas are gradually returning to normal operations after days of heavy footfall.
LPG, CNG stations remain shut
However, while petrol and diesel availability has improved, many LPG and CNG stations across the city remain closed. The shutdown of these outlets has been observed at several fuel stations, even as petrol pumps move toward normal conditions, pointing to continued disruption in alternative fuel supply.
Centre cuts excise duty
Meanwhile, in New Delhi, the Centre has announced a sharp reduction in excise duty on fuels in a bid to shield consumers and oil companies from rising global crude prices amid the ongoing tensions in the Middle East.
The government has reduced excise duty on petrol to Rs 3 per litre from Rs 13 earlier, while diesel has been fully exempted from excise duty, down from Rs 10 per litre. The revised rates came into effect immediately following a Finance Ministry notification issued on March 26.
Global crude surge amid conflict
Global crude prices have surged nearly 50 per cent since the United States and Israel launched military strikes against Iran on February 28, triggering retaliation from Tehran. International oil prices had touched around USD 119 per barrel earlier this month before easing to about USD 100 per barrel.
Despite the spike in global prices, retail fuel rates in India have largely remained unchanged, putting pressure on oil marketing companies. The duty cut is aimed at providing relief to these firms, which have been absorbing losses to keep pump prices stable.
Supply concerns and market response
India imports about 88 per cent of its crude oil requirements and a significant portion of its natural gas, much of which passes through the strategically crucial Strait of Hormuz. Disruptions in the region following the conflict have impacted tanker movement and insurance coverage, raising supply concerns.
While some private retailers have raised prices, state-owned fuel companies, which dominate the market, continue to hold retail prices steady. In Delhi, petrol is priced at Rs 94.77 per litre and diesel at Rs 87.67 per litre.
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