The recent petrol shortage in Hyderabad has triggered widespread panic buying, leading to long queues at petrol pumps across the city. Despite government assurances that there is no fuel shortage in Telangana, many petrol stations have run out of stock, displaying ‘no stock’ signs and resorting to rationing fuel sales for two-wheelers to just 150–200 litres.

This situation arose after rumors circulated on social media about a potential fuel shortage, prompting residents to rush to petrol stations. A local resident, A Narendra, mentioned, “I came here after seeing posts about a fuel shortage on social media.” As panic escalated, some petrol pumps reported sales of up to 13,000 litres by 6 PM on a single day, compared to the normal daily sales of 10,000-12,000 litres.

According to the Civil Supplies department, daily petrol consumption in Telangana is approximately 35 lakh litres, while diesel consumption stands at 45 lakh litres. There are around 3,600 petrol pumps across the state, with 900-1,000 located in the Greater Hyderabad Municipal Corporation (GHMC) region. However, the supply of fuel was disrupted over the weekend as oil companies did not deliver fuel on Saturday and Sunday due to holidays.

Stephan Reveendra, the Commissioner of the Civil Supplies Department, urged the public to refrain from panic buying, stating, “I urge the public not to engage in panic buying.” Despite these reassurances, many residents, like Sai Kumar, expressed frustration, saying, “Hundreds of vehicles are here for filling. I am here from almost 25 minutes.”

Marri Amarender Reddy, president of the Telangana Petroleum Dealers Association, criticized the oil companies for imposing sudden rules that negatively impact citizens during such a crisis. Temporary stock issues were notably reported in areas like Bahadurpura and Mir Alam, further exacerbating the situation.

Details remain unconfirmed regarding the exact reason for the sudden surge in demand, and the timeline for when normal fuel supply will resume is also uncertain. The Civil Supplies department maintains that the fuel supply mechanism is functioning normally, but the ongoing panic buying suggests otherwise.

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On March 23, 2026, Deputy Chief Minister Harsh Sanghavi addressed the situation, urging citizens not to succumb to panic buying. “There is enough stock of petrol and diesel available in the state and so people need not do hoarding or panic,” he stated. His comments came in response to reports of significant queues forming at petrol stations, as residents rushed to fill their tanks amid fears of a looming fuel crisis.

Further complicating the situation, the Indian Oil Corporation confirmed that adequate stock of petrol and diesel is available in Gujarat. Sujata Sharma, a spokesperson for the corporation, emphasized, “These are not dry outs. We have checked it from the field and all petrol pumps are working normally and adequate fuel is available at all such facilities.” This assurance was critical in attempting to quell the rising tide of panic among consumers.

The panic was reportedly triggered by a sudden change in payment systems implemented by oil marketing companies, which led to confusion and uncertainty among fuel retailers. Approximately 30-40% of retail outlets in Gujarat are currently facing supply issues due to logistics difficulties, but this does not indicate a lack of fuel availability. In fact, fuel retailers have reported that India maintains a 70-day reserve of crude oil, further confirming that there is no current shortage.

As the situation unfolded, the state government took proactive measures to monitor the fuel supply closely, holding regular review meetings to ensure that petrol and diesel remain available at all pumps. The government is fully prepared to ensure that petrol and diesel are available at all pumps, according to Sanghavi. He also urged the public to disregard rumors being spread through social media or WhatsApp, which have contributed to the panic.

The price of crude oil has seen a sharp increase, rising from USD 60 to USD 118-120 per barrel due to the conflict in West Asia. This spike has raised concerns about potential fuel price hikes, adding to the anxiety among consumers. However, officials have reiterated that the current supply situation remains stable, with a 5% increase in petrol supply and a 10% increase in diesel supply compared to two months ago.

In light of these developments, several petrol pumps in Ahmedabad have temporarily shut down due to supply issues, further fueling the panic among residents. The advance payment policy for fuel dealers was implemented to address the refining losses faced by oil marketing companies, which has added to the confusion surrounding fuel availability.

The wider picture

As the situation continues to evolve, observers are keeping a close eye on the fuel supply dynamics in Gujarat. The government’s commitment to ensuring fuel availability is crucial in restoring public confidence. While the immediate crisis appears to be driven by misinformation and panic buying, the underlying factors such as rising crude oil prices and logistical challenges remain critical issues that need to be addressed to prevent future occurrences.

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