Tamil Nadu: Fuel Outlets Start To Go Dry Across State
On Thursday, petrol bunks in Chennai, Krishnagiri, Salem and Theni were forced to stop sales due to the shortage.
Chennai: The retail fuel outlets in Tamil Nadu have started to go dry after Oil Manufacturing Companies (OMCs) excluding Indian Oil Corporation (IOC) have restricted the supply of fuel to avoid losses. The fuel bunks in Tamil Nadu started to go dry after bunks in Rajasthan, Andhra Pradesh and other states also went dry.
On Thursday, petrol bunks in Chennai, Krishnagiri, Salem and Theni stopped sales due to the shortage, said a report on Times of India.
The issue started after the Union government slashed fuel taxes. Following this, OMCs on average had been losing Rs 25/litre on diesel and Re 1/litre on petrol as the petroleum ministry also refused to permit them to increase the retail prices of the fuel.
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In order to avoid losses, OMCs two weeks back started to limit the supplies. Against this backdrop, not just public sector companies like Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) but private companies are also suffering the wrath of the decision.
The only company to sustain itself was Shell and the fuel company remains afloat by increasing the price of products higher than the other bunks.
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Meanwhile, Tamil Nadu Petroleum Dealers Association to curb the shortage has sent a letter to Union Petroleum Ministry along with its counterparts from 18 other states. In the letter, the associations said, the supplies have been drastically reduced despite paying in advance and hence it's also resulting in dry out at outlets.
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