The Petrol Pump Dealers Association Punjab (PPDAP) alleged oil companies were “deliberately” cutting fuel supply to decrease losses.
It expressed concern over what it said was increasing inventory replenishment crisis at retail outlets of public sector oil marketing companies (OMCs) across the state.
The dealers said most dealerships of Hindustan Petroleum Corporation Limited (HPCL) were facing dry-outs. The issue was also persistent at Bharat Petroleum Corporation Limited (BPCL) pumps.
Despite dealers maintaining sufficient advance payments in their respective accounts under the existing “cash and carry” business model introduced post the West Asia war crisis, fuel supplies were continuously facing delays and disruptions, causing acute operational difficulties and inventory shortages at several retail outlets, they alleged.
Manjeet Singh from the association said oil companies were not providing sufficient fuel to the dealers to avoid losses.
“While Indian Oil Corporation Limited (IOCL) has somehow been managing the situation better, dealers of HPCL and BPCL are witnessing operational stress and delayed replenishments on a regular basis. The situation in HPCL is particularly alarming, with prolonged dry-outs and severe supply inconsistencies being reported from multiple districts, more so in rural areas,” he added.
He alleged dealers were being compelled to lift premium fuel before regular variants, adding to the hardships.
“While HPCL is aggressively pushing ‘power’ petrol as part of the indent execution process, dealers of IOCL and BPCL are also being told to uplift premium products. Such practices are imposing additional and avoidable financial burdens upon dealers, who are already operating under strained liquidity conditions amid disrupted replenishment cycles,” Singh went on to add.
The association has written to the Chief Secretary, urging intervention. According to the dealers, it was a normal operational practice for oil depots to function even on holidays, including Sundays, prior to February to clear pending indents and maintain smooth supply lines. However, contrary to the demands of the present situation, several depots have curtailed holiday operations and reduced effective working hours, severely affecting replenishment cycles and aggravating supply instability across the state.
They said that as a result of the changes, retail outlets were frequently running dry, creating panic and apprehension among consumers.
It has resulted in rush and long queues at outlets where fuel is still available, disturbing public convenience and supply equilibrium, the association claimed.
