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Fuel pump ops hit by new rules for dealer payments, see long queues | Mumbai News – The Times of India

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Fuel pump ops hit by new rules for dealer payments, see long queues | Mumbai News – The Times of India


MUMBAI: Rumours of fuel shortage and a change in dealer payment rules led to long queues at petrol pumps across MMR on Friday.Motorists crowded outlets in Mumbai, Kalyan, Badlapur, Thane, Koparkhairne, Vashi and Belapur, pushing up sales by over 40%, especially at smaller stations in the city with limited storage. Some pumps faced partial dryouts, while a few were close to shutting until fresh stocks arrived.

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Oil company officials and petrol dealers clarified that refinery operations and fuel dispatches remained normal across Maharashtra, including MMR. They said tankers continue to deliver supplies to pumps since early morning and there is no statewide shortage of petrol or diesel. The disruption, they said, was linked to a new advance payment system.

Fuel pump ops hit by new rules for dealer payments, see long queues

Till March 16, dealers could lift fuel on short-term credit and make payment a day or two later. That cushion has now gone. Dealers must first deposit the full amount and only then can they place an order for delivery. For larger pumps with stronger cash flow and reserve storage, the shift is manageable. For smaller dealers, especially during sudden spikes in demand, it has become difficult. Bank holidays compound the problem. Dealers said that if payments are not deposited before bank closures, some pumps may not be able to place fresh orders in time. With bank holidays on Saturday and Sunday and more closures lined up next week for Mahavir Jayanti as well as the annual bank closing, some outlets could face temporary dry spells next week if they miss the payment window. Similar pressure may arise around Good Friday. Sources said that a few pump owners in Mumbai have managed to get fuel on credit from an oil marketing company during the holiday period, although this privilege was not extended to all pump owners across MMR. A typical pump procures around 12,000 litres of petrol and 8,000 litres of diesel. Bigger stations often maintain a 50% buffer, allowing them to keep selling while waiting for the next tanker. Smaller pumps usually have less storage and less financial flexibility. So, their stocks get exhausted faster if sales surge unexpectedly. Another factor is diesel demand from heavy goods vehicles. Some trucks that are unable to refuel on highways enter Mumbai to top up, adding to the load on city pumps. Dealers’ associations have urged citizens not to panic. They said affected pumps are likely to receive supplies within six to 24 hours or at most in two days. Chetan Modi, Petrol Dealers’ Association president, said, “Fuel is available, supply lines are working, and the queues are largely the result of panic buying colliding with advance payment and bank closure constraints.” In Thane, apart from one petrol pump in Kapurbawdi, where a long queue was seen (which is a regular occurrence at that location), petrol pumps within the city did not witness any unusual rush. The owner of BabuBhai Petrol Pump in Thane appealed to motorists not to form unnecessary queues or stock excess fuel. Citizens were also requested not to carry bottles or containers for extra fuel. A motorist at the spot said he did not want to take any chance in the face of uncertainty. (With inputs from Nishikant Karlikar)



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