Indian Oil Corporation denies reports of fuel shortage
What's the story
Indian Oil Corporation (IOC), the largest oil company in India, has denied reports of a nationwide fuel shortage. The company described the outages at some retail outlets as "highly localized" and temporary. It attributed these disruptions to regional demand-supply mismatches and changing sales patterns. Despite the challenges, IOC said it has been able to meet the "sustained and exceptionally high" growth in demand across the country.
Cause analysis
Explain reasons behind fuel outages
IOC explained that the increased demand at some outlets is due to a seasonal rise in diesel consumption during the harvesting season. The company also noted that customers are moving from private pumps where retail prices are relatively higher. This has led to an increase in institutional purchases at public sector outlets, further straining supply chains.
Customer reassurance
No overall shortage of petrol, diesel in India
In a statement, IOC reassured customers and the general public that there is no overall shortage of petrol and diesel in India. The company said only a "very small number" of its 42,000-plus fuel stations have witnessed supply disruptions. It added that stocks and supplies at most pumps remain normal and adequate.
Demand management
Reasons behind spike in demand
IOC acknowledged that the higher demand at some locations is due to a seasonal increase in diesel demand during the ongoing harvesting period. The company also noted a temporary shift of customers from certain private retail outlets due to relatively higher retail prices at some private pumps. Additionally, there has been an increase in migration of institutional and commercial demand to PSU retail outlets, as bulk and institutional supplies are currently priced significantly higher, in line with prevailing international market prices.
Stock management
IOC urges customers not to panic buy
IOC said it, along with other oil marketing companies (OMCs), continues to maintain adequate overall stocks and supplies of petrol and diesel across the country. The company is closely monitoring the situation and taking necessary steps to address these isolated situations. It also reiterated its commitment to ensuring uninterrupted fuel supplies to consumers and requested customers not to panic-buy.