Petroleum traders ask state to resolve rationing of fuel in AP

VIJAYAWADA: Petroleum dealers in AP have asked state government to intervene and resolve the issue of rationing fuel in the state by holding a joint meeting with government-owned oil marketing companies BPCL, HPCL and IOCL.

“Otherwise, shortage of fuel may have a major impact on prices of essential commodities in the state,” they warned.

Petroleum traders have written a letter to the civil supplies commissioner for the third time, seeking his intervention into this issue of priority. They have also communicated the same information to chief secretary and minister for civil supplies.

Traders contend that BPCL is imposing a cut on supply of both petrol and diesel, making several fuel stations go dry in several parts in AP, including Visakhapatnam. HPCL has stopped supply of fuel on credit basis. However, IOCL is delivering fuel as per requirement and is even offering credit.

Dealers are wondering why both BPCL and HPCL are being discriminatory while IOCL is functioning normally.

Petroleum traders have also expressed worry over the plan of HPCL’s Visakha Refinery to shut down partially during June and July. They fear this may cause a drastic fall in supply of fuel in AP and neighbouring Telangana. They say though HPCL is coming up with alternate plans to supply fuel through purchases from standalone refineries, it is yet to be seen to what extent these plans work out.

Fuel dealers feel if state government arranges a joint meeting between petroleum traders and oil marketing companies along with officials, it will help sort out claims and counterclaims by both parties over short supply. Oil manufacturing companies (OMCs) are claiming loss of revenue to extent of ₹25 per litre on diesel and ₹9 per litre on petrol.

Traders are worried that if they are unable to run their fuel stations due to rationing in supply of fuels, they may lose their livelihood.

AP has nearly 3,600 fuel stations, whose sales volume is nearly eight lakh litres of diesel and about 4.5 lakh litres of petrol per day. Any disruption in regular sale of fuel for whatever reason may affect the movement of general public, essential commodities and vegetables, leading to price rise.

AP Federation of Petroleum Traders general secretary P. Ravi Kumar said, “We request state government to call for a joint meeting between OMCs and traders to resolve the issues urgently and amicably before the situation goes out of control.”