Kochi ∙ Fuel supply to Hindustan Petroleum retailers has been halved. ത് Bharat Petroleum and Indian Oil have not reduced their supply to Kerala at present. There is a crisis in most states. At less than half of the 600 loads of fuel that were supposed to arrive at many pumps yesterday. There are regarding 800 HPCL pumps in Kerala. Fuel shortages are possible only in isolated areas as supply from other companies is not disrupted. But HPCL officials declined to comment.
International crude oil prices have hovered above $ 120 a barrel, but fuel prices in India have not risen for the past two months. With this, it is alleged that the loss-making companies are reducing sales to minimize losses. Pump owners say there are indications from oil companies that supply might be in crisis. HPC had earlier reduced the supply of fuel to unpaid dealers. But now those who have paid in advance are not getting the full load.
The IOC receives 6 million barrels of Russian oil a month under an agreement with Rosneft, a Russian government – controlled crude producer. There is also an agreement to buy an additional 30 lakh barrels. However, BPCL and HPCL have not been able to reach an agreement with Rosneft.
Russian oil flows into India
Russia is the second largest supplier of crude oil to India, surpassing Saudi Arabia. Russia has offered cheaper crude oil since the EU imposed sanctions following the Ukraine-Russia conflict. Following this, Indian refineries began to buy more oil from Russia. Indian companies bought 2.50 crore barrels of oil from Russia in May. It accounts for more than 16 per cent of total imports. Iraq is the largest importer of oil.