Petrol pumps run on thin credit as oil marketing companies tighten purse strings

Mint earlier reported that amid high oil prices and a supply squeeze due to the war in West Asia, OMCs halted supplies on credit to fuel retailers.On 26 March, the petroleum and natural gas ministry had said that efforts were underway to increase the supplies from one-day credit period to up to three days of supplies on credit.“In most cases, it is still advance payment. For large retailers there may be instances of a day's credit, but not all are getting that,” said Marri Amarender Reddy, general secretary of the UPDA.

"Especially in rural areas, for smaller pumps, this is a concern. The government's announcement of efforts for three-day credit is a welcome move and OMCs should officially inform the retailers on resumption of the credit policy."Uday Lodh, president of the Consortium of Indian Petroleum Dealers (CIPD), which represents about 30,000 fuel outlets, said Indian Oil Corporation (IOC) is offering one-day credit selectively to “high-selling dealers”, while Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation (HPCL) are mostly continuing with advance payment requirements.A petroleum ministry official, however, said on condition of anonymity that supply on credit has resumed.A BPCL spokesperson, in response to an email query from Mint, said, "We would like to confirm that we have structured financial support mechanism to facilitate sufficient inventory at our retail outlets.

This is aimed at ensuring consistent product availability for our esteemed customers. This policy remains same as it was before the war broke out in March,"Queries emailed to the spokespeople of the ministry of petroleum and natural gas, IOC, and HPCL remained unanswered till press time.A Delhi-based petrol dealer, on