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Petrol Diesel Crisis From Up To Karnataka In Indian States Increased Difficulties Of Farmers, Dealers, Less Supply Compared To June Last Year low


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Petrol and diesel crisis has started in many parts of the country including Uttar Pradesh, Rajasthan, Madhya Pradesh, Haryana, Gujarat and Karnataka. At many places the pumps have to be shut down for hours. Due to this the difficulties of the farmers engaged in farming are increasing. Petroleum dealers say that oil companies are not giving any clear reason for the supply crisis. Despite increase in demand by 48 to 54 per cent in this June as compared to June last year, even the earlier level is not being supplied. Due to this, the problems of the pump operators are increasing and it is becoming difficult to answer the questions of the customers and farmers. This crisis is likely to increase further in the coming days.

Experts say that the price of crude oil has increased continuously in the international market. For some time now, government companies have not been able to raise oil prices in proportion to the international market. This is reducing the profits of the companies. Following the formula of excess supply plus loss and short supply causing less loss, companies have started working on the formula of less supply than demand. Due to this, the situation of ‘rationing’ of petrol and diesel has started appearing unannounced.

According to petroleum dealers, Reliance has stopped supplying petrol and diesel at its pumps. Naira is supplying only 40% of the demand for Diesel and 50% of the demand for Petrol. Similarly, HPCL has asked for advance payment. Even after this, only the requirement of two to three days is being supplied. Due to the scorching heat in many parts of the country, the demand for diesel for paddy irrigation has increased. Second, the demand for petrol and diesel has increased due to the opening of schools and colleges after the summer vacations.

The crisis is likely to increase further: the dealers informed the company and the government
Anurag Narayan of Forum of Like Minded States has told the Secretary, Ministry of Petroleum and Natural Gas, the supply of petrol and diesel has been reduced at the level of HPCL and BPCL throughout the country. Advance payment is being demanded from petroleum dealers across the country. No information is also being shared regarding the change in business practices. Due to this the dealers are facing a lot of difficulties.

  • Uttar Pradesh Petroleum Traders Association has written a letter to HPCL Chief General Manager North Zone. Association President Ranjit Kumar and General Secretary Dharamveer Chaudhary say that there are 7,500 retail outlets of petrol and diesel in UP.
  • IOCL has been creating problems for the last few days by changing the fixed procedure for supply and payment of petrol and diesel.

demand for supply
The All India Naira Dealers Welfare Association has informed the minister and the officials of the ministry about the problem. Association’s vice-president Dharmendra Kumar Sharma has demanded to supply diesel-petrol as per the demand of petrol pump dealers.

The government agreed – the demand increased but there was no crisis
The Ministry of Petroleum and Natural Gas has issued a statement on this crisis. The Ministry has recognized that there has been a significant increase in the demand for petrol and diesel in certain areas at specific locations. It is said to increase by 50 percent in the first half of June 2022 as compared to the corresponding period of last year. According to the ministry, the demand for petrol and diesel has increased at specific locations in some states like Rajasthan, Madhya Pradesh and Karnataka. But the production is sufficient to meet the demand.

  • Wholesale buyers have shifted their purchases to retail shoppers. Apart from this, the effect of the government’s action on illegal biodiesel sale has also been shown. The ministry has said, oil companies are ready to meet the challenge. For this they are ready to increase the stock at depots and terminals, increase the movement of tank trucks and work in night shifts in depots and terminals.

profit-loss equation
In the international market in March this year, the rate of crude oil had reached an all-time high of $ 123.70 per barrel. The government has not allowed the prices to rise for almost two months so that the inflation rate does not increase. It is being told that due to this, companies are suffering a lot on the sale of petrol and diesel.

Expansion

Petrol and diesel crisis has started in many parts of the country including Uttar Pradesh, Rajasthan, Madhya Pradesh, Haryana, Gujarat and Karnataka. At many places the pumps have to be shut down for hours. Due to this the difficulties of the farmers engaged in farming are increasing. Petroleum dealers say that oil companies are not giving any clear reason for the supply crisis. Despite increase in demand by 48 to 54 per cent in this June as compared to June last year, even the earlier level is not being supplied. Due to this, the problems of the pump operators are increasing and it is becoming difficult to answer the questions of the customers and farmers. This crisis is likely to increase further in the coming days.

Experts say that the price of crude oil has increased continuously in the international market. For some time now, government companies have not been able to raise oil prices in proportion to the international market. This is reducing the profits of the companies. Following the formula of excess supply plus loss and short supply causing less loss, companies have started working on the formula of less supply than demand. Due to this, the situation of ‘rationing’ of petrol and diesel has started appearing unannounced.

According to petroleum dealers, Reliance has stopped supplying petrol and diesel at its pumps. Naira is supplying only 40% of the demand for Diesel and 50% of the demand for Petrol. Similarly, HPCL has asked for advance payment. Even after this, only the requirement of two to three days is being supplied. Due to the scorching heat in many parts of the country, the demand for diesel for paddy irrigation has increased. Second, the demand for petrol and diesel has increased due to the opening of schools and colleges after the summer vacations.



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