Visakhapatnam Diesel Crisis Deepens as Supply Cuts Hit Fuel Stations
Visakhapatnam is grappling with a sharp shortage of diesel, with fuel stations across the city and neighbouring districts reporting irregular supplies following tighter controls imposed by oil marketing companies. The disruption comes against the backdrop of global tensions in West Asia, even as authorities maintain that there is no nationwide fuel crisis.
Over the past week, several petrol bunks have intermittently displayed “no stock” boards, leaving motorists uncertain about availability. Dealers say the situation has been driven by reduced allocations and stricter distribution norms introduced by oil companies to curb the diversion of fuel.
A fuel station operator said supply has become increasingly erratic. “We are not responsible for the shortage. Allocations have been cut, and strict limits are being enforced on sales,” he said.
Industry sources said diesel meant for retail outlets is being closely monitored due to concerns over diversion to industrial consumers. Oil companies have revised industrial pricing, increasing it by ₹22 per litre, while retail consumers continue to pay about ₹96.24 per litre.
Sales at retail outlets have also been progressively restricted. The earlier cap of 300 litres per customer was reduced to 150–200 litres and has now been further curtailed to 50 litres. Officials said digital monitoring systems have been strengthened to track sales and prevent violations.
A dealer said the reduced supply has affected operations significantly. “Earlier, we were receiving up to three tanker loads a day. Now it has been reduced to one, which is insufficient to meet demand,” he said.
The situation is particularly acute with Indian Oil Corporation (IOC), where a 20,000-litre tanker is being shared among four fuel stations, leaving each with about 5,000 litres per day. Bharat Petroleum Corporation Limited (BPCL) is managing relatively better supply, though constraints persist across outlets of all major oil companies.
Visakhapatnam serves as a key fuel distribution hub for Srikakulam, Vizianagaram, Visakhapatnam, and Anakapalli districts. Combined daily supply from HPCL, BPCL, and IOC has dropped to about 950 kilolitres (9.5 lakh litres), nearly half of the earlier allocation of over 20 lakh litres.
An oil company official said the restrictions are aimed at preventing misuse. “The measures are intended to ensure that diesel supplied for retail consumption is not diverted to industrial users,” the official said.
However, the curbs have led to long queues at fuel stations, frequent stockouts, and growing inconvenience for consumers across the region.