Speculations of a fuel price hike after elections led to a surge in motorists queuing up at petrol pumps in Andhra Pradesh and Telangana, attempting to stock up on fuel.
Despite the government's assurance of no shortage, many fuel stations displayed 'No Stock' boards, with authorities attributing the shortage to panic buying.
Social media posts and a report by Kotak Institutional Equities suggested a potential increase of ₹25–28 per litre for petrol, prompting the ministry of petroleum and natural gas to deny any proposal for a hike.
Andhra Pradesh's chief minister, N Chandrababu Naidu, reviewed the reasons behind the shortage and directed officials to ensure fuel supply meets demand.
Oil companies have stopped extending credit to retail outlets, leading to commercial consumers purchasing fuel at retail outlets, exacerbating the shortage.
