Rumours triggered panic buying of petrol and diesel in parts of the country, leading to an "exceptional" surge in demand, the government said
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NEW DELHI — Rumours triggered panic buying of petrol and diesel in parts of the country, leading to an "exceptional" surge in demand, the government said, adding that fuel stocks remain sufficient to meet requirements.
In Andhra Pradesh, rumours of imminent price rise led panic buying in several towns, leading to shortage and more than 400 petrol pumps running dry on Sunday, according to reports.
"We have observed exceptional growth in certain areas... 30-33 per cent in demand for fuels like diesel. That is the reason why certain retail outlets faced issues," said Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, at a news briefing.
She, however, hastened to add that the oil companies are addressing the problem. "There is no issue of availability. We have enough stocks."
Despite panic buying being observed at certain retail outlets due to rumours, PSU Oil Marketing Companies are ensuring adequate stocks of petrol and diesel at their outlets.
"PSU retail outlets are operating normally," she said. "Citizens are advised to avoid panic purchase of petrol, diesel and LPG as the government is making all efforts to ensure availability of petrol, diesel and LPG.
While she did not elaborate on the rumours, a chatter about prices being hiked after the final phase of voting in West Bengal is completed on April 29 may have triggered the panic buying.
Despite a surge in international oil prices, retail petrol and diesel rates in India have remained unchanged as state-owned oil companies absorb the impact. Analysts, however, are questioning how long the oil companies could hold prices without government support.
Sharma said India has maintained adequate supplies of petrol, diesel and cooking gas despite ongoing geopolitical tensions.
Refineries are operating at high capacity with sufficient crude inventories, ensuring stable supplies of petrol and diesel. To shield consumers from rising global oil prices linked to the Middle East crisis, the government has cut excise duty on petrol and diesel by INR 10 per litre while raising export levies on diesel and aviation turbine fuel.
Retail fuel prices remain unchanged at public sector outlets, the government said, adding that adequate stocks are available despite isolated instances of panic buying triggered by rumours.