Indian Fuel Retailers Seek Advance Payments Amid Global Oil Price Surge

Indian state-owned fuel retailers have begun asking petrol pump dealers to make advance payments for gasoline and diesel supplies as mounting losses from retail fuel sales strain their finances. Dealers said the move comes as companies face rising costs while domestic fuel prices remain unchanged, putting pressure on cash flows across the supply chain.

Nearly 90% of India’s over 100,000 fuel stations are linked to state-run refiners Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. The companies have been hit by a weakening rupee and soaring refining margins, while the government has held retail fuel prices steady to protect consumers despite global crude oil prices climbing above $100 per barrel following supply disruptions through the Strait of Hormuz.

Earlier, fuel retailers typically offered dealers about five days of credit for fuel purchases, but the shift to advance payments has triggered concern among pump operators who also depend on credit-based sales to customers such as transporters and government departments. Dealer associations warned the change could tighten liquidity for thousands of fuel station operators nationwide.

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