Gujarat: Fuel shortage prevails on fourth straight day

AHMEDABAD: For the fourth consecutive day, on Wednesday, the shortage of petrol and diesel across fuel outlets prevailed in Ahmedabad as well as other parts of Gujarat with many outlets running out of either petrol or diesel or both. Petroleum dealers have alleged that many of them are getting only an estimated 40% of the fuel supply against their requirements.
Farhana Shaikh had to struggle to get her scooter refuelled. “I went to a fuel station near my home and it was shut,” said Shaikh, a resident of Juhapura. “The attendant told me they were waiting for fuel, and I had no choice but to go back later as I was delayed for work.”
Bhargav K, a software engineer from the city, faced trouble too. He did not find diesel till he navigated through three fuel stations, he said.
The supply of fuel to retailers from oil companies, both private and public, has reduced over the past fortnight, says the Federation of Gujarat Petroleum Dealers’ Association (FGPDA).
Dhimant Ghelani, the secretary of the FGPDA, said: “Against our requirement, we are getting 40-50% reduced supply from oil companies.” Ghelani added: “So the shortage is intensifying. Moreover, most bulk consumers of diesel are also turning to retail outlets, exerting added pressure on fuel retailers.”
Oil company sources said that bulk procurers who typically get cheaper diesel directly from oil companies are in fact paying higher prices due to the crude oil price surge.
“Fuel available at retail outlets ends up being cheaper. Consequently, most direct consumers including logistics companies and transporters, among others, are turning to retail outlets,” said a senior official of an oil company. “On the other hand, supply-side constraints persist, as a result of which the demand-supply gap is widening.”
Since the Russia-Ukraine war broke out in February this year, crude oil prices have maintained an upward trend. This is impacting revenues of oil companies, which as sources indicated, is one of the reasons for the shortages.
Oil PSUs and FGPDA members have alleged that private companies are not supplying adequately to retail outlets, placing a burden on PSUs. However, private oil company sources refute the claims, saying that a majority of retail outlets belong to oil PSUs and not to private companies.
Email queries sent to Nayara Energy did not elicit a response. Gujarat is home to an estimated 4,900 fuel stations of which about 900 are owned by private companies whereas the remaining are managed by PSUs. “Cumulative losses to the tune of Rs 1,500 crore are being incurred by Jio and British Petroleum (Jio BP) since February 2022,” a top source said. Private oil companies had raised fuel prices recently. For instance, Reliance increased prices of both petrol and diesel by Rs 3 each.