What fuelled the rumour that led to panicked motorists lining up at fuel pumps in Hyderabad?
With the Gulf hostilities weighing on their minds, people were quick to respond to reports of a fuel scarcity even as the state government assured the citizens of adequate stocks and normal supply line functioning.
Panic stricken Hyderabadis have queued up at fuel stations since Tuesday, waiting for hours in long lines to get their car and two-wheeler tanks filled to the brim. Some even take the precautionary step of filling empty containers – from 2.5 litre cola to 20 litre water bottles – with petrol or diesel. WhatsApp groups are guiding fellow society residents or friends to pumps with fuel stocks still left and are less crowded. Arguments with fuel station staff and scuffles among customers are now a common sight, with police having been called in at several places to restore peace.
Even as the Revanth Reddy government, Hyderabad district and police bosses assured the public of enough fuel stocks and no foreseeable supply disruption because of the ongoing hostilities in the Gulf, rumours and misinformation have led to panic buying and many fuel pumps running dry in the city in the last 2-3 days. Even the central government and oil PSUs maintained that there was enough fuel in stock to meet over two months of the country’s needs, and that the supply chains were functioning normally.
So, what has alarmed the city and many towns across Telangana? The apparent trigger is the “no-stock” boards that appeared earlier this week at some of the pumps. As the Iran war weighed on their minds, flustered motorists rushed to other outlets to fill before stocks ran out, on their way spreading the “no-fuel” scare through calls and social-media messages to their friends and families.
Uttam Kumar Reddy, minister for civil supplies, categorically stated that fuel stocks “are more than adequate for the next three months and that supply is currently running well ahead of demand”. The minister revealed that on Wednesday – March 25, when the panic led to queuing up at fuel pumps, IOCL, BPCL and HPCL ramped up supplies. Against a demand of 17,246 KL, 17,898 KL was supplied, “an excess of nearly 652 KL”, according to the minister.
Reddy appealed the public not to indulge in panic buying, stating shortage rumours as having no basis. He claimed that an additional 16,000 KL of buffer stock had been arranged and 1,200 extra tankers had been pressed into service to keep fuel stations fully stocked. He also clarified that the temporary “no stock” boards at a few outlets were because tankers hadn’t reached yet and not due to actual shortage.
Vinod Vishwanath, general secretary, Telangana Petroleum Dealers’ Association, attributes the no-stock signage at some pumps to the public sector oil companies –BPCL, IOCL and HPCL – withdrawing the credit facility to dealers. “Normally, the oil companies offer a few days’ credit window to dealers, but in the past few weeks they have insisted on clearance of dues and asked for advance payments for supplies. Unable to make such prompt payments, some dealers had to put up the no-stock boards,” Vishwanath told India Today.
Banks were also reportedly disinclined to give additional big loans to some dealers at this point in order to show a healthy balance sheet with the financial year ending next week. Dealers feared the consecutive bank holidays – Sri Rama Navami on Friday, fourth Saturday and Sunday – could aggravate the credit availability problem again.
The association also claimed that oil companies’ supplies to non-defaulters too did not meet requirements this week, which caused a temporary stock shortage at some points, adding to the public anxiety.
“But the foremost reason was the unfounded panic of motorists, whose demand led to an abnormal surge in sales – about three times the normal figure,” says Vishwanath. “Pumps with stocks to normally last 2-3 days were depleted in half a day.”
There are around 3,500 fuel pumps across Telangana. Government officials asserted that against the average daily supply of 5,883 kilo litres of petrol in Telangana, the supply on Wednesday – the second day of the turmoil – was 10,799 KL. “People are panicking when there is absolutely no need to worry,” reassured Hyderabad district collector Hari Chandana Dasari, while speaking to India Today. “We are ensuring adequate stocks of petrol and diesel at all the outlets to meet the people’s demand.”
A special control room was set up in the city to monitor and ease the situation at the fuel stations. The Telangana government has advised the public against the use of cans and containers to carry petrol and diesel, terming it illegal and hazardous.
Subscribe to India Today Magazine