MUMBAI: There was panic in Navi Mumbai as pumps ran short of petrol fuelling speculation of hoarding and an imminent fuel price hike.
There was nothing of the kind. The problem arose as Hindustan Petroleum Corporation, which supplies fuel to Navi Mumbai (and Thane), had shut down its Chembur refinery for routine maintenance work. IndianOil quickly rushed supplies from its terminals in Hazira, Gujarat and Vadala in the city. The shortfall was quickly made up and this arrangement is likely to continue for the next 2-3 days.
Diesel was freely available in the Navi Mumbai outlets and the fact that petrol stocks depleted so quickly reflected the increasing levels of consumption in the area.
Oil companies constantly swap petro-products among each other to meet individual needs of their retail outlets. BPCL and HPCL, which have refineries in Mumbai, partially meet the needs of IOC’s retail trade in the city. Similarly, IOC with its massive refining presence in north India helps out BPCL and HPCL.
Other parts of Maharashtra, especially Nashik and Pune, have reported incidents of fuel shortage and indications are that this could be reflected in other small centres across the country.
The delay in announcing price increases, meanwhile, will do little to help the cause of the oil companies which are bleeding by the day. The eventual hike is going to be little to write home about and unless some solution is found on diesel, which is soaking the companies dry, the reprieve will be short-lived.
Sources said that IOC's announcement on cessation of diesel imports had the go-ahead from the petroleum ministry to gauge public reaction to the move. “It is now getting increasingly obvious that people would rather pay more for fuel rather than face a situation of acute shortage,” they added. The message has also gone out loud and clear to the UPA's allies that tough solutions to the crisis are inevitable.
