‘No need for panic buying’: Indian Oil, BPCL say ample fuel stock in the country amid India-Pakistan conflict

Indian Oil Corporation and Bharat Petroleum Corporation urged their buyers to not panic hoard fuel. It said there is enough stock in the country and the fuel lines are operating smoothly. This comes as the conflict between India and Pakistan reaches new levels, following the drone attacks on Indian cities. 

“Indian Oil has ample fuel stocks across the country and our supply lines are operating smoothly. There is no need for panic buying—fuel and LPG is readily available at all our outlets. Help us serve you better by staying calm and avoiding unnecessary rush. This will keep our supply lines running seamlessly and ensure uninterrupted fuel access for all,” said the oil company. 

Meanwhile, IOCL shares were trading lower today. Last checked, the stock was down 1.10 per cent at Rs 139.05.

After IOCL's statement, Bharat Petroleum Corporation assured its customers that "sufficient petrol, diesel, CNG, and LPG are available across its vast nationwide network". "All BPCL fuel stations and LPG distributorships, across its nationwide network are operating smoothly and are fully equipped to meet the energy needs of consumers. There is no cause for concern or panic buying. Our supply chain operations remain robust and efficient, ensuring uninterrupted supplies," urging customers to remain calm. 

Oil prices were up slightly on Friday, after rising about 3 per cent in the previous session. Brent crude rose 23 cents, or 0.37 per cent, to $63.07 a barrel while US West Texas Intermediate crude was up 21 cents, or 0.35 per cent, at $60.12 a barrel as at 0507 GMT. On Thursday, both contracts settled nearly 3 per cent up. The prices are likely influenced by the trade tensions between the US and China. 

The conflict between India and Pakistan could lead to increased procurement of crude as well as refinery activity, as per Rystad Energy analysts. 

"Diesel demand is likely to rise amid increased military mobilization, while airline fuel consumption declines as airspace closures lead to rerouted flights, cancellations and soaring airline ticket prices," Rystad's Rohan Goindi said in a note.

In terms of daily crude demand, India consumes 5.4 million barrels per day (bpd), compared to Pakistan's 0.25 million bpd, according to Rystad Energy estimates.