 "Scrapping of Rs 500 & Rs 1,000 notes doubles petrol, diesel sales overnight")
Petrol pumps turned out to be the last solace for people since last evening after Prime Minister Narendra Modi announced the demonetisation of Rs 1,000 and Rs 500 currency notes with effect from Friday night. According to industry sources, the sales of petrol and diesel have doubled since last night with serpentine queues found in fuel outlets across the country.
On an average, each petrol pump in India consumes around 5.6 kilo litre (kl) of petrol and diesel every day. "Our sales have doubled since last night. This is unprecedented sales figures that we are getting from across the country. Oil marketing companies have assured us guaranteed supply for the next two days," said Ajay Bansal, president of All India Petroleum Dealers' Association. Majority of the customers wanted to change their notes as there was a lack of clarity initially regarding the move, which led to a panic and queue outside fuel stations.
According to the ministry of petroleum, there has been a 15% increase in sales by today evening. “I had a video conferencing with all the oil marketing company officials and has asked them to accept the higher denomination notes. Action will be taken against those outlets which fail to do this,” said petroleum minister Dharmendra Pradhan, addressing a press conference in Delhi today.
Private fuel retailers, however, would not accept Rs 500 and Rs 1,000 notes. Shell India said it would not accept the notes at its outlets. Ravi Sundararajan, Director, Shell India Markets Private Limited & Cluster GM Retail, "Shell retail stations - like other private fuel retail stations - cannot accept these notes for purchase of fuel. Notes of denominations Rs. 100 and below will continue to be accepted against purchases. We are also accepting all credit and debit cards." Some of Shell fuel stations are not open for operation. The company said it was reviewing the situation and would open them as and when the situation was under control.
As per figures of March this year, India has 56,190 fuel retail outlets, out of which public sector majors like Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd has a combined network of 52,604 retail outlets. The private sector players in the sector are Shell, Reliance and Essar Oil. On a monthly basis, each of these outlets consume 170 kl of fuel.
"We have taken all the necessary steps to manage this situation and have asked all the petrol pumps to accept the higher denomination notes. Since there is a shortage of smaller currencies, outlets are encouraging the consumers to refuel on higher denominations. Moreover, since banks are closed and there is confusion over the Rs 1000 and Rs 500 notes, we have extended credit facility to our dealers for the time being. Even though the sales have doubled since last night, we have enough stock to supply to the dealers," said Balwinder Singh Canth, Director (marketing), IOC.
In 2015-16, the petroleum products consumption in India increased by 11%, which was an increase after eight years. The overall fuel demand zoomed to 183.5 million tonne (mt) from 165.5 mt, compared to the previous financial year. While diesel consumption increased by 7.5% to 74.6 mt, gasoline usage rose 14.5% to 21.8 mt.