New Delhi, May 23: Indian Oil Corporation (IOC), the nation’s largest oil firm, on Saturday said there was no overall shortage of petrol and diesel in the country and described fuel outages reported at some retail outlets as “highly localised” and temporary, caused by regional demand-supply mismatches and shifting sales patterns.
The state-owned fuel retailer said higher demand at certain outlets was driven by a seasonal rise in diesel consumption during the harvesting season, migration of customers from private pumps where retail prices were relatively higher, and increased institutional purchases at public sector outlets as bulk fuel supplies were being priced in line with elevated international rates.
The company said petrol sales during May 1-22 rose 14 per cent year-on-year, while diesel sales increased around 18 per cent, reflecting “sustained and exceptionally high” growth in demand that it continued to meet across the country.
In a statement, IOC said it “wishes to reassure customers and the general public that there is no overall shortage of petrol and diesel in the country. The current situation being witnessed at certain retail outlets is highly localised and temporary in nature, arising due to local demand-supply imbalances and redistribution of sales patterns in select areas”.
It said only a “very small number” of outlets in its network of more than 42,000 fuel stations had witnessed supply disruptions, while stocks and supplies at the majority of pumps remained normal and adequate.
The higher demand being witnessed at some locations is attributable to “seasonal increase in diesel demand during the ongoing harvesting period, temporary shift of customers from certain private retail outlets, owing to relatively higher retail prices at some private pumps, and increased migration of institutional and commercial demand to PSU retail outlets, as bulk and institutional supplies are currently priced significantly higher in line with prevailing international market prices”.
IOC added that state-owned oil marketing firms continued to maintain sufficient fuel inventories nationwide and were taking steps to address isolated disruptions and ensure uninterrupted supplies.
“Despite this sustained and exceptionally high growth in demand, IndianOil continues to consistently meet customer requirements across the country.”
It also urged consumers to avoid panic buying, reiterating its commitment to maintaining seamless fuel availability across the country.
“IndianOil, along with other oil marketing companies (OMCs), continues to maintain adequate overall stocks and supplies of petrol and diesel across the country,” the statement said.
“The company is closely monitoring the situation and taking adequate measures to address these isolated situations and ensure uninterrupted fuel supplies to consumers.”
IOC said it remains committed to maintaining seamless fuel availability across the country and requests customers to avoid unnecessary panic buying. (PTI)
