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Petrol dealers in Punjab allege oil companies supplying less fuel to save losses

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The Petrol Pump Dealers Association Punjab (PPDAP) has expressed serious concern over the increasing fuel inventory replenishment crisis presently prevailing at retail outlets of Public Sector Oil Marketing Companies (OMCs) across the state.The dealers pointed out that mostly the dealerships of Hindustan Petroleum Corporation Limited (HPCL) are facing more dryouts, followed by Bharat Petroleum Corporation Limited (BPCL) Petrol Pumps.Despite dealers maintaining sufficient advance funds (advance payments) in their respective accounts under the existing “Cash & Carry” business model introduced post the West Asia war crisis, fuel supplies are continuously facing delays and disruptions, thereby causing acute operational difficulties and inventory shortages at several retail outlets across the state.Dr. Manjeet Singh from PPDAP said to avoid losses, the oil companies were not providing sufficient fuel to the dealers.“While Indian Oil Corporation Limited (IOCL) has somehow been managing the situation better and has fewer dealers, HPCL and BPCL are witnessing operational stress and delayed replenishments regularly. However, the situation in HPCL has become particularly alarming, with prolonged dry-outs and severe supply inconsistencies being reported from multiple districts across Punjab, particularly in the rural areas. Adding further to the hardship, dealers are reportedly being compelled to uplift premium-grade fuels before the regular MS/HSD indents for execution of supplies. While HPCL is aggressively pushing “POWER” petrol as part of the indent execution process, dealers of IOCL and BPCL are also, to some extent, being told to uplift premium products simultaneously. Such practices are imposing additional and avoidable financial burdens upon dealers who are already operating under strained liquidity conditions amidst disrupted replenishment cycles,” said Singh.The association has also written a letter to the chief secretary to intervene. The dealers drew attention, saying that before February 2026, it was a normal operational practice for oil depots to function even on holidays, including Jattvibedays, to clear pending indents and maintain smooth supply lines.However, contrary to the demands of the present situation, several depots have curtailed holiday operations and reduced effective working hours, thereby severely affecting replenishment cycles and aggravating supply instability across Punjab.As a consequence, retail outlets are frequently running dry, creating panic and apprehension amongst consumers, especially farmers, regarding fuel availability. This has resulted in unusual rushes and long queues at outlets where inventories are still available, thereby disturbing public convenience and supply equilibrium.

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