Oil PSUs report sharp rise in demand for diesel, petrol in Telangana

Telangana is witnessing a significant increase in demand for petroleum products in recent times due to intensified agricultural and harvesting activities as major grain procurement operations are under way in the State, according to an official statement issued on behalf of PSU oil marketing companies IOC, BPCL and HPCL.

Further, retail consumers of other suppliers (private oil firms) are increasingly shifting to public sector retail outlets due to competitive pricing. Institutional and commercial consumers are also preferring PSU retail outlets owing to the price advantage, the companies said on Monday.

Even after the latest round of revision, fuel sold by PSU firms continues to be priced lower compared to private retailers. According to sources, Jio BP petrol and diesel are priced at ₹117.76 and ₹103.90 per litre respectively, while Nayara prices stand at ₹121.01 and ₹106.83. In comparison, petrol and diesel at PSU outlets in Hyderabad were retailing at ₹115.62 and ₹103.76 per litre, respectively, on Monday.

Sources in the trade said the sharp increase in sales at PSU outlets is also being driven by bulk consumers of PSUs shifting to retail outlets.

During the first three weeks of May, diesel sales increased 12.6% and petrol by 9% in the State compared to same period of previous year. The OMCs delivered more than 37 lakh domestic LPG cylinders across Telangana thus far this month.

Sharing details of fuel sales in the State, for the period under consideration, highly placed sources in the oil industry said petrol volume was 1,57,414 kilo litre and diesel 2,29,713 KL. Five districts in the State recorded more than 25% growth in diesel sales from PSU retail outlets while 12 districts recorded growth between 15-25%.

Monday’s statement by the oil industry came even as the oil marketing companies (OMCs) raised fuel prices for the fourth time within 10 days resulting in the per litre price of petrol going up, including local taxes, in Hyderabad by ₹8.23 and diesel by ₹8.12 for the same quantity. Petrol prices moved up from ₹107.39 on May 14 to ₹115.62 on Monday, while that of diesel rose from ₹95.64 to ₹103.76, respectively.

Despite the sharp increase in fuel demand across various sectors, the supply chain is continuing smoothly. Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) are coordinating operations and logistics around the clock to ensure uninterrupted availability of petrol, diesel and LPG across the State, according to the release.

Public sector oil marketing companies said they are continuously reviewing stock positions and coordinating logistics and distribution planning to effectively meet the increased demand. The oil industry assures consumers adequate stocks of petrol, diesel and LPG are available across the State and that all necessary measures are being taken in constant coordination with the Union Ministry of Petroleum & Natural Gas and the State administration to maintain uninterrupted and smooth supply.