Fuel Crisis Intensifies in Vidarbha as Panic Buying Persists
Consumers in the Vidarbha region of Maharashtra continued to exhibit panic buying behavior on Wednesday, the second day of an escalating fuel crisis. According to sources within government oil marketing companies, petrol sales soared to nearly double the normal daily quota, while diesel sales were recorded at one-and-a-half times the average. This surge in demand has placed significant strain on the local fuel supply chain, exacerbating concerns over availability and pricing.
Sales Figures Reveal Alarming Trends
On Wednesday alone, an estimated 6,000 kilolitres of petrol and 10,000 kilolitres of diesel were sold in the region. These numbers starkly contrast with typical daily averages, highlighting the depth of consumer anxiety. Even as sales data for Thursday remains unconfirmed, preliminary reports from oil companies suggest an anticipated 80% increase in sales compared to normal levels. This persistent panic buying occurs despite urgent appeals from Nagpur District Collector Vipin Itankar, who has publicly urged residents to avoid hoarding and maintain calm.
Private Sector Price Hikes Add to the Burden
In a move that has further complicated the situation, Nayara Energy—a private fuel retailer with Russian stakeholders—announced significant price increases. Petrol prices were raised by Rs 5 per litre, and diesel by Rs 3 per litre. This decision comes at a time when oil companies globally are grappling with shrinking profit margins due to flaring crude oil prices, partly driven by ongoing conflicts in the Middle East. Government-owned oil companies have so far limited their adjustments to a modest Rs 2 increase for premium fuels only.
The price hike by Nayara Energy is expected to intensify pressure on public sector oil companies, where fuel remains comparatively cheaper. Dealers warn that this disparity could lead to increased demand at government pumps, potentially overwhelming their capacity. Nayara Energy operates a depot in Wardha, which supplies not only its own pumps in the region, including two in Nagpur city, but also supports government oil companies. Private players like Reliance and Nayara collectively hold an estimated 10% market share in Vidarbha, according to industry sources.
Operational Challenges and Supply Chain Disruptions
The crisis took a turn for the worse on Thursday when normalcy was short-lived. By afternoon, three fuel pumps near Manewada and Ayodhya Nagar were forced to shut down due to depleted stocks. This triggered a chain reaction, with queues forming rapidly at other pumps, many of which soon ran dry. Amit Gupta, President of the Federation of Maharashtra Petroleum Dealers Association, confirmed these developments, noting that the situation remains volatile.
Gupta elaborated on the operational hurdles faced by dealers. Depots are operating on extended hours under directives from district administrations, but payment terms continue to impede the timely lifting of stock. A recent holiday for Ram Navami prevented dealers from depositing cash in banks, delaying advance payments to oil companies. On Thursday, only dealers whose payments had been processed were able to replenish their supplies. This issue stems from a policy shift by oil companies in response to the West Asia conflict, which has made advance payments mandatory, replacing the previously liberal credit system.
Looking ahead, Gupta anticipates continued difficulties in making advance payments due to the upcoming weekend and the end-of-month accounts closure in March. These financial constraints could further disrupt fuel availability in the coming days.
Supply Replenishment Efforts Underway
Despite the challenges, efforts to replenish depots are proceeding normally. Nayara Energy has extended working hours at its Wardha depot until evening, following instructions from the district administration. Additionally, railway sources report that three to four rakes of petroleum wagons are arriving in Nagpur daily, a rate consistent with pre-crisis levels. Each rake contains 50 to 52 wagons of petroleum products, which should be sufficient to maintain full depot stocks in the region. There has been no reduction in rake movement, indicating that supply chain logistics are holding steady amid the demand surge.
The ongoing fuel crisis in Vidarbha underscores the complex interplay between local consumer behavior, global oil market dynamics, and regional geopolitical tensions. As the situation evolves, stakeholders are closely monitoring sales trends and supply chain resilience to mitigate further disruptions.
