New Delhi: India's three public sector oil marketing companies — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) — have pushed back against a spate of reports of fuel dry-outs at retail petrol pumps across several states, asserting that supply operations are normal and that the squeeze visible at certain outlets is driven entirely by demand-side factors, including an unusual flight of customers from private retailers, like Reliance-bp and Nayara, and a quiet migration of bulk industrial users to outlets meant for domestic consumers.
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In a statement posted on X on Thursday, Indian Oil said, "Fuel supplies across IndianOil's retail network remain stable. IndianOil has not issued any instructions for rationing of fuels at retail outlets, and supply operations across the country continue smoothly."
The country's largest fuel retailer attributed the recent demand spike to two factors. "The recent increase in demand is driven by higher diesel consumption during the harvesting season. Additional demand pressure has also emerged due to a shift of customers to IndianOil retail outlets owing to comparatively lower prices than private retailers, along with a visible shift of institutional and commercial consumers to retail fuel outlets," the statement said.
BPCL, in a statement issued on X on Thursday, echoed the same line. "BPCL clarifies that fuel supplies across its retail network remain normal, with adequate stocks and uninterrupted distribution operations in place to meet customer demand. Reports regarding fuel shortages or supply disruptions are misleading and do not reflect the actual on-ground situation," the company said, adding that "fuel availability across BPCL outlets continues smoothly without any interruption."
Significantly, both Indian Oil and BPCL have flagged a sustained shift of customers from private retailers to PSU outlets as a key driver of the demand pressure — a pointer to the price differential that has long bedevilled private players such as Reliance-BP and Nayara Energy, who have periodically scaled back retail operations to limit losses when international crude prices outpace domestic pump prices.
BPCL said on X, "Some outlets have witnessed higher customer footfall due to seasonal demand, increased diesel consumption during the harvesting period, and customers preferring BPCL outlets due to higher prices at private oil marketing companies."
Equally significant is the admission that institutional and commercial consumers — bulk buyers who normally lift diesel directly from depots at industrial rates — have begun turning up at retail outlets meant for individual motorists, taking advantage of the gap between industrial and retail diesel prices.
"In certain locations, a portion of industrial diesel demand has also shifted to retail outlets due to the current price differential between industrial diesel and retail diesel prices," BPCL said, adding that "the increased activity at certain locations is purely demand-driven and should not be construed as a supply concern."
The PSU pushback comes against a backdrop of mounting dealer and consumer complaints. The Punjab Petrol Dealers Association (PPDA), in a letter to the state's chief secretary, has flagged what its president Paramjit Singh described as an "increasingly serious fuel inventory replenishment crisis," with HPCL and BPCL outlets reportedly running dry across multiple districts, particularly in rural areas. The PPDA's letter notes that Indian Oil has fared comparatively better. Dealers said supplies were being delayed despite advance payments, and alleged that depots had curtailed earlier-routine holiday operations, aggravating replenishment cycles.
In Odisha, hundreds of fuel stations across Bhubaneswar, Rourkela, Balasore, Angul and Jajpur either ran out of petrol or sharply rationed sales last week, Business Standard reported. Two-wheeler owners were able to lift fuel at a cap of Rs 200 and four-wheelers at Rs 500 to Rs 2,000 per vehicle, with petroleum dealers attributing the temporary dry-outs to a nearly 50 percent surge in sales driven by panic buying.
BusinessToday reported sluggish supplies and replenishment delays at highway outlets across Maharashtra, Madhya Pradesh, Rajasthan, Bihar, Uttar Pradesh and Uttarakhand. Travellers driving from Bihar to New Delhi said they were rationed to Rs 500 per stop across the roughly 1,000-km stretch, where some pumps temporarily suspended operations. Dealers also alleged that tankers were being made to wait for hours at depots despite advance payments. In Rajasthan, fuel dealers have separately alleged curbs on petrol and diesel sales, though the state's chief secretary, after a review, said stocks were adequate.
In a separate statement issued on X on Thursday, HPCL addressed allegations of fuel restrictions in the Augustmuni and Guptkashi areas of Uttarakhand. "HPCL would like to clarify that reports regarding fuel restrictions and shortages in the Augustmuni and Guptkashi areas are misleading and do not reflect the actual situation," the company said, pointing out that it does not operate retail outlets in either town. "The nearest HPCL retail outlet from Guptkashi is located approximately 8.6 km away and currently has sufficient stock availability. Similarly, while Augustmuni town has a BPCL outlet, the nearest HPCL outlet is located around 8.3 km away and is adequately stocked."
HPCL did acknowledge that some dealer-level rationing had taken place, but characterised it as a weekend tourist-load phenomenon. "Due to exceptionally high customer footfall and transit load during the weekend, temporary rationalisation was undertaken at certain locations by dealers to ensure orderly servicing for all customers. However, the situation remains normal during weekdays, with regular replenishment and uninterrupted operations being maintained," the statement said, adding, "No restriction or limit has been imposed by HPCL on the sale of Petrol (MS) or Diesel (HSD)."
All three companies appealed to customers to disregard rumours and rely only on official communication. "Customers are requested to avoid panic buying and rely only on official Indian Oil communication channels for accurate updates. Indian Oil remains committed to ensuring reliable fuel availability across the country," Indian Oil said.
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BPCL similarly urged consumers "not to indulge in panic buying or rely on rumours and unverified information circulating on social media or television platforms", adding that it "remains committed to ensuring uninterrupted fuel availability and seamless service across its network."
HPCL said the same, asking customers "not to be influenced by rumours or unverified messages circulating on social media and to rely only on official communication channels for accurate information."