Speculation of a post-election increase in fuel prices across the country was evident in crowds of motorists queuing up outside petrol stations in Andhra Pradesh and Telangana, trying to stock up on fuel.
Fearing a shortage, motorists queued up in their two-wheelers, cars, trucks and other vehicles at fuel stations, despite the government’s assurance that there would be no such shortage, dismissing reports.
For the past three days, several gas stations in Andhra Pradesh have displayed “no stock” signs, with authorities attributing the shortage to consumers’ panic buying in anticipation of disruption to petrol and diesel supplies amid the West Asian crisis.
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What sparked the panic buying and waiting lines?
Some social media posts and a report by local brokerage Kotak Institutional Equities indicated that fuel prices may see an increase after the assembly elections end on April 29.
Kotak’s institutional shares estimated a potential increase of $ $MoneyControl reports 25-28 per liter of petrol.
But the Ministry of Petroleum and Natural Gas denied that there was any proposal related to raising gasoline and diesel prices under study.
The ministry said in a statement that such news aims to create fear and panic among citizens and is deceptive and misleading.
What is the situation in Andhra Pradesh?
In Rajahmundry in Andhra Pradesh, people were seen carrying plastic containers, along with queues of vehicles, to transport petrol and diesel, news agency PTI reported. Meanwhile, petrol pumps in Ajit Singh Nagar, Auto Nagar and adjoining areas in Vijayawada witnessed crowds.
On ‘no stock’ hoardings and crowds of passengers, Gopala Krishna, a member of the Fuel Retailers Association from Guntur, claimed that oil companies had supplied less fuel to traders over the past week and had stopped diesel supplies, news agency PTI reported.
“We are receiving information that diesel is running out everywhere from our dealers… We expect that 70 to 80 percent of petrol depots will have fuel by tomorrow,” he said. “The temporary closure of some gas stations is due to supply issues,” one X user highlighted.
Another user, referring to Andhra minister and LDF leader Nara Lokesh, complained of “severe petrol shortage in Srikakulam district for the last 20 hours.”
They said: “Most gas stations are empty, resulting in passengers and emergency services being affected. I request your immediate intervention to resolve this issue.”
Andhra CM reviews shortage and directs restoration of fuel supply
Reviewed by Andhra Chief Minister, N. Chandrababu Naidu, expounded on the reasons behind the petrol and diesel shortage in the state and instructed officials and oil companies to ensure that fuel supply meets the demand.
Meanwhile, officials said that the situation has reached its peak due to commercial consumers purchasing fuel from retail outlets, news agency ANI reported. They also said that oil companies have stopped extending credit to retail outlets.
Naidu asked the suppliers and their representatives why the credit facilities were stopped, and warned that their permissions could be reconsidered if this situation continued.
In a post on X on Monday, BPCL said fuel supply across Andhra was “steady”.
“The current pressure observed in some outlets is driven by high demand due to panic buying, not a shortage of supply. When demand is unusually high in a short period, it can create temporary pressure at retail points despite adequate availability,” it said, while saying it was “committed to maintaining uninterrupted supply.”
