Hyderabad: Amid panic buying by consumers, petrol and diesel dealers in Hyderabad on Wednesday blamed the credit standoff with oil companies for fuel shortage at several pumps. Dealers claim that despite assurances from IOCL, HPCL and BPCL about adequate fuel stocks, 40% of the pumps in the city went dry.He alleged that the disruption was not due to fuel shortage but due to financial constraints faced by dealers in making payments to the companies. Panic buying made the situation worse. However, oil companies said that credit facilities were never uniform and were extended selectively based on the dealer’s financial credibility and transaction history. He also indicated that the disruption was temporary and fuel supplies were expected to stabilize by Thursday evening. According to dealers, oil companies had stopped supplying fuel to outlets that were unable to make payment either on the same day or in advance.

“Earlier, dealers were given a credit window of up to two days, but now they have to pay in advance before sending the fuel. Even when we are ready to make advance payments, supplies are not being sent for unknown reasons,” said M Amarender Reddy of Telangana Petroleum Dealers Association. times of India . Telangana Petroleum Tank Truck Owners Association president K Rajasekhara Reddy said that till recently, dealers were allowed credit facility of up to ₹1 crore, but this has been stopped due to supply stoppage for the last two days.

The situation worsened due to frequent bank holidays. “Typically, dealers require Rs 20 lakh to Rs 40 lakh to purchase a fuel load. Due to limited access to funds, payments are being delayed, leading to supply shortage,” said Rajeev Amram, joint secretary (south), Consortium of Indian Petroleum Dealers.“Given the financial pressures and high crude sourcing costs, extension of multi-day credit is not feasible. Payments need to be made almost on a daily basis,” said a state coordinator representing oil companies and an HPCL official.“All petroleum terminals and supply points are fully stocked, and fuel supplies continue to operate smoothly. Panic buying has led to an unusual increase in fuel purchases, temporarily impacting availability at some retail outlets,” the three oil companies said in a joint statement.