Japan K Pathak, Gandhinagar: While the government and oil company officials deny any oil supply constraints, the petrol pump owners and dealers have said that there have been supply issues since last Friday and they cumulatively resulted into dry outs at several pumps, resulting into widespread local media coverage and panic among public.

The dealers who made representation before the Surat district collector told what the dealers in various parts of Gujarat have been facing since Friday.

‘Amid the war situation and rising crude prices, oil companies introduced an advance payment system. Dealers even started paying in advance, but due to losses to oil companies linked to increasing crude oil prices and depreciation of Rupees against U.S. Dollar, they curtailed supply. They would send one tanker when we demanded two. They would delay supply. When a holiday is coming, supply is needed more a day before, but they would not provide it,’ a dealer association office bearer said.

‘Earlier, without orders, they would send stock overwhelmingly and we would buy. Today, we pay in advance, but they don’t send timely supply. Dealers are ready to sell if they get stock from the company. If dry-out happes to a petrol pump, the dealers should not be blamed for it.’

‘If supply is curtailed, what should we do? We seek guidelines from the government. There has to be clarity regarding indent process and supply,’ another dealer said.

‘On Saturday at 5 pm, the oil company’s supply depot shut and Sunday was a holiday. Many petrol pumps did not get petrol or diesel even when orders were made on Saturday. At many pumps on Monday, there is no petrol or diesel and there is pending load. Today, with additional load, when the depot is closed, more pumps will be affected, and people would think there is a shortage and start stocking,’ he added.

‘Till now, people were not in panic and they believed in the government. However, the situation now is that companies conveyed on Friday evening that dealers would need to make advance payment to get stock. Those who couldn’t make payment on Saturday and Sunday sold Friday-procured stock, and some pumps also ran dry on Sunday. Now on Monday, when people have made payment in advance, the stock is not loaded. People then think that there is a shortage.’

A dealer from Rajkot speaking about “dry outs” at several fuel stations in the city, stated that it was a result of logistical and banking delays rather than a genuine supply shortage.

Watch | Cooker, Kitchen Jar, Milk Canes, Utensils, Water Tanker, Water Tank, Water Bucket, Barrels, Kerba, Dolchu, Pavali, and what not used for stocking of petrol and diesel on Monday as panic-gripped and rumors-driven people turned desperate in parts of Gujarat. While 100s of… pic.twitter.com/HGRGqlgXbM

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According to him, the primary reason some pumps ran out of stock was the Saturday-Sunday weekend (Saturday was public holiday for Eid), during which many dealers were unable to process payments to oil companies. This led to a backlog where orders could not be placed or fulfilled in time. He further noted a significant shift in industry practice: where dealers previously operated on credit—receiving fuel in the morning and paying in the evening—the system has now moved toward mandatory advance payments, complicating the procurement process for some.

The President highlighted that the current delays are also tied to a massive spike in demand that has overwhelmed delivery capacities.

Meanwhile, some videos that have now come to light suggest that hoarding of petrol might have started 1–2 days earlier amid fears of a price rise. As people started filling up their vehicles, anticipating a possible increase in fuel prices, the average daily demand at some petrol pumps increased, which may have led to supply shortages at a few outlets.

In some instances, he said, orders for 70 trucks were placed when the daily fulfillment capacity was only 35 trucks. A shortage of rental trucks also hindered the movement of fuel, though dealers who own their own transport vehiclesfaced fewer disruptions.

He noted that while some pumps receive fuel daily, others are waiting two days, creating an inconsistent flow.

It’s worth noting that Indian oil marketing companies (OMCs) are facing mounting pressure as a sharp rise in crude oil prices, coupled with a weakening rupee, impacts their margins. However, despite these challenges, retail fuel prices have remained stable, offering relief to consumers.

Crude oil prices have surged significantly amid tensions in West Asia. The Indian crude basket averaged $69.01 per barrel in February 2026, rising sharply to around $117.09 per barrel in March. Similarly, global Brent crude has climbed to about $112 per barrel, marking a steep increase over a short period.

At the same time, the Indian rupee has depreciated against the US dollar, touching 93.49 on March 21, compared to 91.07 on February 28, further increasing the cost of imports.

Industry estimates suggest that every $1 increase in crude prices raises India’s annual oil import bill by around ₹16,000 crore, amplifying financial pressure on oil companies.

Reports indicate that the combined impact of higher crude prices and currency depreciation has led to rising input and transportation costs. During the period between August 2025 and February 2026, when crude prices ranged between $62 and $69 per barrel, companies reportedly earned healthy margins—approximately ₹5–10 per litre on petrol and ₹8–15 per litre on diesel. However, the recent surge has reversed the situation. Current estimates suggest under-recoveries of around ₹20 per litre on petrol and up to ₹40 per litre on diesel, significantly affecting profitability.

To partially offset costs, oil companies have increased prices of premium petrol (by about ₹2 per litre) and bulk diesel (by around ₹22 per litre), while keeping retail pump prices unchanged.

Despite rising costs, petrol and diesel prices for consumers have remained unchanged since February 2022. In Delhi, petrol continues to be priced at ₹94.77 per litre and diesel at ₹87.67 per litre. The government, it is learnt is not going to hike prices untill barrel price touches 130 USD.

This stability has provided relief to consumers but has shifted the burden onto oil marketing companies. Additional factors such as higher freight, insurance, and war-risk premiums have further increased operational costs.

Brokerage firms have flagged potential financial stress if high crude prices persist. Reports suggest that if Brent crude remains above $100 per barrel, HPCL could slip into losses, while profits of Indian Oil and BPCL may decline significantly.

A prolonged period of under-recoveries could impact cash flows, increase debt levels, and potentially necessitate policy interventions such as subsidy adjustments or duty cuts. DeshGujarat