State-run oil marketing companies have suspended fuel on credit to retail outlets in India, citing the closure of Iran's Strait of Hormuz and the resulting crude oil supply crunch.
Indian Oil Corp. Ltd., Hindustan Petroleum Corp. Ltd., and Bharat Petroleum Corp. Ltd. have halted their revolving credit policy and are now insisting on advance payments from fuel stations.
The move affects around 100,000 retail fuel stations in India, which are majority-owned by the three state-run oil marketing companies.
Agriculture and industrial buyers who purchase fuel on credit may also take a blow, as fuel pumps will find it hard to serve them without the credit facility.
The Iran war has choked off around 40% of crude supplies for India, the world's third-largest oil consumer, where petro-product demand is expected to touch 250.8 million tonnes in Fiscal 2027.
