Several petrol pumps in Hyderabad and many parts of Telangana closed operations on Wednesday due to depletion of stocks following consumers’ panic buying of fuel in the last two days, people familiar with the matter said.
Long queues of vehicles were seen in front of many petrol stations, while ‘no stock’ boards were put up at many other floors due to stock not arriving on time. This disruption led to increased demand at operating gas stations, with some pumps running out of stock within a day.
In areas like SR Nagar and Ameerpet, hundreds of auto-rickshaws were seen queuing up at petrol stations throughout the day. The situation has also affected the availability of public transport, leaving commuters stranded as there are fewer cars on the roads.
Congestion began at petrol stations on Tuesday evening and continued until late at night, with increasing congestion with cars, buses heading to distant destinations, and two-wheelers. People were seen in many places buying petrol in bottles, cans and other containers as a precautionary measure.
According to a gas station dealer, who requested to remain anonymous, the crisis began two days ago, after oil marketing companies imposed stricter payment terms for fuel supplies. “Until that day, oil companies were supplying petrol and diesel on a short credit basis, allowing traders to make payments a day or two after receiving the stock. This arrangement helped us run operations smoothly,” he said.
Now oil companies are said to be insisting that traders must clear past dues and make an advance payment for new stock before supplies are released. As a result, fuel supplies to many outlets were disrupted, forcing many pumps to temporarily stop.
He added, “During the past two days, several gas stations in different areas of the city remained closed intermittently, while the available ones witnessed a severe rush and quickly ran out.”
Hyderabad Police Commissioner V C Sajjanar said the authorities are in constant touch with oil companies to ensure that fuel supply continues across the city without major disruption.
He said the sudden spike in demand was largely due to panic buying, as motorists rush to gas stations and fill up their tanks simultaneously. “This has led to temporary ‘out of stock’ signs being displayed at some pumps, which should not be confused with an actual fuel shortage,” he said.
Due to misinformation, fuel sales within Hyderabad Commissionerate limits have risen sharply in recent days, Sajjanar said. “While 3,024 kiloliters of fuel were sold on March 22, the number reportedly doubled to 6,400 kiloliters on March 23, indicating panic-induced demand,” he added.
The police also warned against the illegal sale of bulk gasoline or diesel in bottles and cans, indicating that strict legal measures will be taken against violators.
He added that the situation at all 240 petrol pumps within the Commission’s boundaries is under continuous monitoring in coordination with Civil Supplies and Revenue Department officials.
Telangana Petroleum Merchants Association President Mary Amander Reddy issued a statement saying that many people are rushing to petrol stations and filling their tanks unnecessarily due to the circulation of false and misleading news about fuel shortage.
“This panic buying led to an abnormal increase in sales at about 2.5 to 3 times normal levels, resulting in stock being temporarily depleted at many retail outlets across the country,” he said.
Reddy explained that there is no shortage of fuel supplies from companies and supply chains are working normally. He said: “Carrying gasoline or diesel in cans for storage is against safety standards, as improper storage of fuel can lead to dangerous situations/situations, including fire accidents.”
State Civil Supplies Minister N Uttam Kumar Reddy held an emergency meeting to take stock of the situation with Civil Supplies Commissioner Stephen Ravindra. Speaking to reporters later, the minister categorically confirmed that stocks are more than enough for the next three months and supply is currently exceeding demand.
“Oil companies – Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have significantly increased supplies. As on Wednesday, against a demand of 17,246 kiloliters (KL), the companies supplied 17,898 KL, leaving a surplus of around 652 KL,” it said.
He noted that even though daily demand suddenly rose by 25% due to panic buying, supplies were maintained at 22% above average, ensuring smooth availability.
He said that an additional 16,000 kiloliters of buffer stock had already been arranged and an additional 1,200 tankers had been brought into service to keep fuel stations fully stocked. Reddy added that any temporary boards showing “no stock” at a few outlets were only because tankers had not arrived yet and not due to any actual shortage.
