The government’s tacit directive to state-run oil companies to keep petrol and diesel rates frozen has disrupted the deregulated fuel trade, leading private refiners to sharply divert loss-making domestic sales to lucrative export markets and prompting public sector retailers to adopt restrictive measures to reduce losses, which in turn has led to a scarcity in various parts of the country, according to people aware of the developments.
To be sure, there is no fundamental shortage of fuel but an artificial one created by companies seeking to maximise profit (the private ones) or reduce losses (the state-owned oil retailers).
Ground reports by HT correspondents from various locations in Uttar Pradesh, Madhya Pradesh, West Bengal, Haryana, Punjab and Rajasthan pointed to a supply shortage in smaller towns and rural areas, particularly at pumps operated by Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL). Several pumps run by private operators such as Reliance and Nayara Energy faced acute fuel shortages, and some of them even went dry.
