India’s state-owned fuel retailers have begun demanding advance payments from dealers for gasoline and gasoil supplies, as companies grapple with mounting revenue losses triggered by rising global oil prices.
According to industry sources, nearly 90% of the country’s 101,470 fuel stations are affiliated with major state refiners such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited.
The refiners have been hit hard by a weakening rupee and surging refining margins, with gasoline and gasoil cracks reaching multi-year highs. Despite global oil prices climbing above $100 per barrel, India has not increased retail fuel prices in an effort to shield consumers.
Supply disruptions through the strategically vital Strait of Hormuz—amid ongoing tensions linked to the US-Israeli conflict with Iran—have further intensified pressure on the market.
Dealers say the shift to advance payments marks a significant change from the previous system, where they were allowed up to five days of credit. The new policy has sparked concerns among fuel station operators, many of whom rely on credit to run their businesses.
“Dealers are very upset because we also operate on credit, and many of us supply fuel to clients such as government departments and transporters on a credit basis,” said Ajay Bansal, President of the All India Petroleum Dealers Association, which represents around 92,000 fuel stations nationwide.
The three state-run companies have yet to respond to requests for comment on the matter.