Iran-Israel Tensions Escalate: Looming Crisis at Petrol Pumps Follows LPG Shortage
New Delhi: Following the crisis in LPG supplies triggered by the conflict between Iran and Israel, the impact is now gradually extending to petrol pumps as well. All of the country's state-run oil companies have implemented a new rule for petrol pump owners.
-Oil Companies Implement New Rule; Common Public to Feel the Impact!
New Delhi: Following the crisis in LPG supplies triggered by the conflict between Iran and Israel, the ripple effect is now gradually extending to petrol pumps as well. All state-run oil companies across the country have implemented a new rule for petrol pump owners. The repercussions of this move could soon reach the common man. All oil companies in the country have announced that fuel will be supplied to petrol pumps strictly on a pre-payment basis; in light of the current crisis, the existing system of supplying fuel on credit is being discontinued.
According to media reports, state-run oil companies have ceased supplying fuel on credit to retail petrol pumps and have enforced stringent payment regulations. Sources close to the matter state that disruptions in the supply chain—stemming from the closure of the Strait of Hormuz by Iran—prompted the oil companies to take this decision. Hindustan Petroleum and Bharat Petroleum had already implemented an advance payment system last week, while Indian Oil suspended its 5-day credit policy effective last Monday.
As per the reports, oil companies had previously maintained a short-term credit policy for petrol pumps, under which owners would receive fuel upfront and make payments at a later date. This decision by the country's three state-run oil companies is expected to impact over 100,000 petrol pumps—an effect that could eventually trickle down to the common man. This move comes at a time when geopolitical tensions in West Asia have disrupted supply routes accounting for 40 percent of India's oil imports. Consequently, a crisis looms over the world's third-largest oil-consuming nation.
Industry agencies estimate that India's oil consumption is set to reach approximately 260 million tonnes in the upcoming financial year. In addition to retail petrol pumps, oil companies have also ceased supplying fuel on credit to wholesale buyers in the agricultural sector, as well as to the transport and industrial sectors. Although the Ministry of Petroleum has not issued any official response regarding this matter, several petrol pump owners have confirmed the existence of such an arrangement.
The National President of the Federation of Indian Petroleum Dealers states that all three state-run oil companies have implemented an advance payment system, and fuel is no longer being supplied to any petrol pump on credit. Until now, all three companies used to extend a line of credit, which provided a grace period of a few days. This organization represents over 30,000 petrol pumps across the country. (Agency)
