According to the latest reports, the Telangana State is experiencing a shortage of diesel with around 30% less stock than usual at fuel outlets.
Normally, the State’s stock is enough to meet fuel demand for 10 to 15 days, but diesel will only be sufficient for three to four days, said Telangana Petroleum Dealers Association (TPDA).
“There is a shortage of diesel, and we are putting together a plan. It is imperative for the Centre to take action on the issue,” TPDA president M Amarender Reddy said.
Rajiv Amaram, joint secretary of the All India Consortium of Indian Petroleum Dealers, echoed his remarks and said that immediate measures were necessary to meet the fuel demands of the state.
There was a shortage due to increased bulk supply rates of diesel, which had been increased by around Rs 22 per liter as part of regular price fluctuations.
In response to multiple international and national market conditions, the oil companies increased the bulk supply rate. Apart from this, oil companies that used to provide fuel at a cheaper price to bulk buyers such as industries and the Telangana State Road Transport Corporation have rolled back the discount offered.
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Due to all these factors, bulk buyers rely on dealers rather than oil companies to obtain diesel, which led to the State’s diesel shortage. The shortage was also caused by oil companies asking dealers for advance payments.
Previously, the stock was paid on the day it was delivered and some dealers were granted credit. As a result, some dealers were unable to obtain diesel because oil companies now required payment three to four days before delivery.
The government has increased the prices on bulk supplies, so even large institutions like TSRTC are relying on retail outlets, causing fuel shortages across the State, according to Food and Civil Supplies Minister Gangula Kamalakar.
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