Bhubaneswar: Fuel shortage looms in Rath Yatra season

Petrol and diesel dealers in the state have been staring at supply crunch after two private players (Reliance and Essar) temporarily shut down most of their petrol pumps due to depleting profit margin. The shortage is being felt more in in small towns and rural areas, prompting the Utkal Petroleum Dealers' Association to urge the Centre and the state to ensure proper supply of petrol and diesel to the state ahead of Rath Yatra and the agriculture season. "Since this is the time of Rath, there is a huge influx of devotees to Odisha," wrote UPDA's Sanjay Kumar Lath to minister of state for petroleum and natural gas.
BHUBANESWAR: Petrol and diesel dealers in the state have been staring at supply crunch after two private players (Reliance and Essar) have temporarily shut down most of their petrol pumps due to depleting profit margin. The shortage is being felt more in petrol pumps in small towns and rural areas, prompting the Utkal Petroleum Dealers' Association (UPDA) to urge the Centre and the state governments to ensure proper supply of petrol and diesel to the state ahead of Rath Yatra and the agriculture season.
"Since this is the time of Rath Yatra, there is a huge influx of devotees to Odisha. Besides, there is the marriage season as well and people would need a seamless supply of petroleum products. Moreover, with the onset of monsoon, farming activities will start and supply of diesel is an essential ingredient for farmers," wrote UPDA general secretary Sanjay Kumar Lath in a letter to minister of state for petroleum and natural gas, Rameswar Teli. Lath has sought urgent intervention of the petroleum ministry and the food supplies and consumer welfare department of the state government to ensure smooth supply of petroleum products.
Oil companies make profit from refining of crude and retail sale. Market insiders said in the current scenario, there is no profit on retail sale. Public sector companies are still making overall profit from refining crude, more than enough to make up for the loss from retail. But since private companies depend on PSUs for refining, retail sale is not bringing enough margin.
The supply chain has been disrupted in Bhubaneswar and other bigger cities as well but not to an extent as the rural areas, Lath claimed.
Dealers said private oil marketing companies have stopped retail sales from their outlets leading to pressure on public sector companies, which supply fixed volume to states.