Truckers and farmers fear fuel price hike as diesel shortages spark panic
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Fears of a diesel price hike and supply shortages triggered panic buying in parts of Andhra Pradesh and Telangana after several fuel stations displayed notices saying they had run out of petrol and diesel.
Long queues formed outside operational pumps as motorists rushed to refill tanks amid concerns that retail fuel prices could soon rise for the first time in four years.
Authorities said the shortages were caused by local transport delays and urged people not to panic. However, anxiety has grown as oil prices remain elevated due to the Iran conflict, increasing pressure on India’s fuel pricing system.
Oil marketing companies have already withdrawn discounts offered to bulk buyers and begun rationing supplies, affecting vehicle turnaround times and freight operations.
The central government has denied plans for an immediate fuel price increase. Sujata Sharma, joint secretary in the oil ministry, said India was not considering any proposal to raise retail fuel prices.
Truck operators warned that higher diesel costs would sharply affect transport, agriculture, and mining sectors. All India Motor Transport Congress member Sukhwinder Singh Sandhu said freight businesses were already struggling due to shortages and reduced activity linked to the regional conflict.
“Everything is going to get more expensive, from clothes to vegetables,” Sandhu told Bloomberg, adding that his Mumbai-based transport business had fallen to 20 percent of normal levels in April.
India controls fuel prices through state-owned retailers and tax adjustments that shield consumers from global oil volatility. But rising crude prices have increased pressure on refiners, many of them government-owned.
Standard Chartered Plc estimated that petrol and diesel prices may need to rise by 8 to 15 rupees per litre if Brent crude averages $95 a barrel during the fiscal year. Brent crude has averaged around $100 since hostilities began in late February.
Farmers in Andhra Pradesh and Telangana also rushed to fuel stations fearing diesel shortages during harvest season, according to the Telangana Petroleum Dealers Association.
India’s diesel consumption rose 8 percent year-on-year to a record level in March, official data showed. The government has sought to calm fears, saying fuel stocks remain sufficient and there is no need to import petrol or diesel.