IOC Boosts LPG Supply in Bengaluru Amid Private Station Shutdowns
In response to a severe auto LPG supply crunch in Bengaluru, Indian Oil Corporation Ltd (IOC) has announced a significant increase in its daily supply while urging autorickshaw drivers to temporarily switch to petrol. The company revealed that nearly 70% of the city's autorickshaw fleet is equipped with dual-fuel capability, making this a viable short-term solution to alleviate long queues at filling stations.
Price Gap and Supply Disruptions Drive Demand to PSU Pumps
An IOC official stated, "The long queues outside our filling stations are because we have not stopped supply. Also, our rates are cheaper than whatever is being sold at private stations." According to IOC, auto LPG is currently priced at Rs 89.5 per litre at public sector undertaking (PSU) outlets in Bengaluru, compared to Rs 99-105 per litre at private stations. This substantial price difference, combined with the shutdown of a large number of private outlets, has pushed more customers towards PSU-run pumps.
Officials explained that nearly 80% of over 300 private auto LPG dispensing stations (ALDS) in Karnataka are non-operational due to geopolitical disruptions. This has left PSU stations to absorb the bulk of the demand, creating significant pressure on the existing infrastructure.
IOC Increases Supply but Faces Infrastructure Constraints
To bridge the supply gap, IOC has ramped up its average daily auto LPG supply. The company increased it from 43.5 metric tonnes in February to 59.5 MT in March, and further to 68.5 MT starting April 4. However, officials acknowledged that infrastructure constraints, including limited dispensing stations and capacity, are making it difficult to fully meet the soaring demand.
This situation has led to prolonged wait times at filling stations, prompting IOC to recommend that drivers in affected areas switch to petrol to maintain their operations. The company noted that such shifts have already been observed in towns like Puttur, where there are fewer supply points, indicating a practical adaptation by the auto-rickshaw community.
Call for Temporary Fuel Switch to Ease Congestion
IOC's appeal for auto drivers to use petrol temporarily highlights the ongoing challenges in the LPG supply chain. While the increased supply efforts are commendable, the infrastructure limitations continue to pose hurdles. The company's statement emphasizes the need for immediate measures to manage the crisis until normalcy is restored in the private station network.
The situation underscores the broader impact of geopolitical events on local fuel markets and the critical role of PSUs in maintaining supply during disruptions. As Bengaluru grapples with this issue, IOC remains focused on optimizing its resources to serve customers while encouraging adaptive strategies among drivers.
