The Hindu : Karnataka / Bangalore News : Frequent power cuts fuel demand for diesel

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Thursday, Jul 24, 2008
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Karnataka

Karnataka - Bangalore

Frequent power cuts fuel demand for diesel

Sharath S. Srivatsa

It has gone up by 20 per cent in Bangalore city alone

BANGALORE: The unprecedented surge in demand for diesel, especially from industrial units facing frequent power cuts, along with a quota system for petroleum outlets, have resulted in the diesel crisis in the State.

The demand for diesel in Bangalore city alone has gone up by 20 per cent during the last one week.

It is learnt that in Bangalore Urban district, the daily sale of diesel, which was around 1,600 kilo litre in June, went up sharply during the last one week, with sales reaching close to 2,000 kl daily. During July 2007, the oil companies sold close to 1,300 kl in Bangalore. While around 7,600 kl of diesel was being sold daily across Karnataka, the demand exceeded 8,000 kl this week.

Besides, under the quota system, each petroleum outlet received only 10 per cent more diesel than its actual sales in July 2007. The renewal of agricultural activities in rural areas, it is learnt, has also led to the increasing demand for the fuel.

“We cannot increase supply of diesel if there is an abnormal increase in demand.

Normally, the supply chain management is planned months in advance and abnormal demand cannot be met within a week’s time,” a senior Indian Oil Corporation official told The Hindu.

He said: “In fact, several power generating plants that had not placed indents for the supply of diesel have approached us now. If we get good rains that help hydel generation, the demand for diesel from these plants also comes down.”

While big industries use the low sulphur heavy stock (LSHS) or fuel oil for generating power, a large number of small users such as small industries, business establishments, apartment complexes and others depend on diesel supplies.

Due to frequent power shutdowns in the last one week, the demand for diesel went up sharply, the official said.

According to IOC sources, July and August are normally lean months, as consumption comes down due to hydel power generation. In fact, the reduced fishing activity in coastal areas alone brings down the daily demand by 1,200 kl to 1,300 kl.

“In Karnataka, diesel is in high demand between December and May and it is a lean period between June and December. Good monsoon that enables hydel power generation as well as the fact that many people do not wish to travel in rain brings down the demand for diesel in the State,” the sources said.

Meanwhile, representatives of petroleum companies briefed the officials of the Food and Civil Supplies Department on Tuesday on the prevailing scenario.

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