Low funds dry fuel pumps

By Our Staff Reporter
IMPHAL, Mar 25 :  Coinciding with the ongoing conflict in the Middle East, which has disrupted global oil supplies, some petrol pumps in Manipur have shut down, reportedly due to a lack of funds to procure fuel.
According to well-placed sources, the closure of these petrol pumps is not due to a depletion of fuel stocks in the State, but rather because the pumps are unable to procure new batches of fuel due to financial constraints.
The sources revealed that oil companies had previously extended railing credit facilities to fuel dealers, allowing them to purchase fuel on credit.
However, this facility was cancelled around March 17.
While the credit facility was in place, fuel dealers were allowed to make payments for their fuel pur- chases after selling the fuel.
Following the cancellation of the credit system, some fuel dealers are unable to lift fuel due to a lack of necessary funds.
Although fuel dealers can still place orders through indents, they are required to make the payment on the same day to avoid hefty penalties as per the new guidelines of oil companies.
Even though the new guidelines are being implemented Nationwide by oil companies such as IOCL, BPCL, HPCL, and Nayara Energy, dealers in Manipur are facing even greater challenges, according to the sources.
The sources said that 80 percent of fuel dealers in Manipur are unable to lift more than 4 kiloliters of fuel in a day, while some dealers can lift slightly more than 4 kiloliters.
They also said that many of the petrol pumps take two to three days to sell 4 kilolitres of fuel.
In the past, a single oil tanker would deliver fuel to multiple pumps along the same route on a sharing basis. However, this facility has also been cancelled following the implementation of the new guidelines, the sources said.
Stating that fuel dealers were required to pay a 16 per cent interest for purchasing fuel on credit while the railing credit system was in place, the sources said they now face hefty penalties if they fail to make payment for fuel purchases on the same day.
They also mentioned that fuel dealers have been facing significant challenges in running their businesses since the COVID-19 pandemic.
Additionally, they noted that the sale of diesel has dropped considerably since the onset of the ongoing crisis on May 3, 2023.
Clarifying that there is no shortage of fuel stock in Manipur, the sources added that some petrol pumps are shutting down because they don't have the funds to purchase fuel.