No fuel crisis, India has enough stock to last lockdown: IOC chief

India, the world’s third largest consumer of energy, has enough gasoline, diesel and cooking gas (LPG) in stock to last well beyond the national closure of three weeks, as all factories and Supply sites are fully operational, according to President of Indian Oil Corp (IOC), Sanjiv Dit Singh.

Singh, who continued to oversee gigantic operations to ensure fuel reaches all nooks and crannies despite his father’s mourning on the 21-day lockdown day, said there was no fuel shortage in the country and that customers should not resort to panic booking of LPG refills.

“We have mapped the demand for all fuel for the entire month of April and beyond. We have refineries operating at levels sufficient to meet all demand. In addition to all bulk storage points, distributors of LPG and petrol pumps are operating normally. There is absolutely no shortage of, “he told PTI.

The national lockdown that shut down businesses, suspended flights, stopped trains and interrupted almost all movement of vehicles, has had an impact on the demand for fuel, gasoline, diesel and fuel for aviation turbines ( ATF) showing negative growth (decrease or decrease in demand).

With most cars and two-wheelers off the road, gasoline demand fell 8% in March while demand for diesel dropped 16%. ATF demand has dropped 20%, he said.

“However, consumption of LPG continues to grow and we serve all customers,” he said.

The refills sought were the result of a panic reservation because in the absence of exhausting existing ones, many could not take delivery of new cylinders, he added, adding that even customers with double cylinder connections had ordered refills without even exhausting a cylinder.

READ ALSO: Here is why your fuel bill has not dropped much despite the drop in crude prices

“There is absolutely no need for a panic reservation. We have enough inventory to meet all the demands,” he said.

“When a customer uses panic booking, it puts unnecessary pressure on the system because the requirement is immediately transmitted to the bottling sites which carry out additional refills, transport it to a bulk location and then to the distributor .

“Distributors use already stretched deliverers to physically deliver the cylinder to the customer’s home only to return with the cylinder filled because the customer refused delivery because the existing ones were not exhausted.”

Singh said that due to declining demand for liquid fuels, refinery operating rates have been reduced by 25-30%, which means they would produce up to 30% less of all fuel petrol, diesel, ATF, naphtha and LPG.

Each barrel of crude oil, once processed, produces a certain percentage of gasoline, diesel, kerosene / ATF and LPG. A reduction in the treatment of crude would therefore result in a decrease in the production of all fuel.

.

Leave a Comment