Fuel shortage hits Andhra, CM Naidu orders urgent steps as 421 outlets shut
Naidu orders emergency measures after 421 gas stations go dry; surge in bulk purchases, cross-border restrictions drive petrol and diesel demand to rise further
To address the sudden and severe fuel shortage that has led to the closure of gas stations in the state, Andhra Pradesh Chief Minister N Chandrababu Naidu has stepped in to direct officials to take immediate measures to address the shortage.
Officials informed Naidu that out of 4,510 fuel outlets in the state, around 421 have been shut due to supply constraints.
The CM reviewed the situation through a teleconference with Chief Secretary Sai Prasad and senior officials before leaving Mumbai for Amaravati late on Saturday (April 26), officials said, according to a PTI report.
“The Chief Minister directed officials to immediately implement measures to address the shortage and prevent inconvenience to the public,” said an official press release, quoting the CM on Sunday.
AP hit by shortage
Andhra Pradesh has been hit by a sudden and severe shortage of petrol and diesel, leaving hundreds of fuel stations empty and sparking widespread public anxiety. The crisis has disrupted daily life for commuters, transport operators, and the state’s vital agricultural and aquaculture sectors.
Long, winding queues are now a common sight at the few remaining operational pumps in major hubs, including Rajahmundry, Eluru, Vijayawada, Tirupati, Guntur, Kakinada and Kurnool. Several fuel stations have displayed "No Stock" boards, while dealers have warned that operations may be forced to shut down if the situation persists.
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While Visakhapatnam remains largely unaffected, the crisis is at its worst in the Eluru district, where the majority of the 426 retail outlets have been forced to suspend operations due to lack of stock.
According to reports, more than 30 fuel stations are closed in Kurnool causing a lot of anxiety among vehicle owners. The disruption was particularly serious in towns such as Yemmiganur, Pathikonda, Alur and Adoni, where horse-drawn carts were spotted transporting goods and passengers.
Panic buying
According to AP officials, panic buying by the public is one of the reasons.
Officials said that although supply has increased by 10 per cent, demand has surged sharply due to panic buying, resulting in heavy rush at several outlets.
On a normal day, average sales stand at 6,330 kilolitres of petrol and 9,048 kilolitres of diesel, but purchases have risen significantly amid fears of shortage.
On Saturday, sales reached 10,345 kilolitres of petrol and 14,156 kilolitres of diesel, they said. Despite improved supply, consumers are facing difficulties as long queues are being witnessed at several outlets due to panic buying.
Bulk purchases increase
Officials also told the media that large-scale bulk purchases—particularly within the aquaculture sector—are placing immense pressure on local fuel availability.
In response, Chief Minister Naidu has ordered a coordinated effort between district collectors and the fisheries department to regulate these drum purchases and stabilise the supply chain.
A significant factor behind the sudden spike in demand is the price difference between Andhra Pradesh and neighbouring states like Tamil Nadu, Odisha, and Karnataka, said reports.
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Traditionally, bulk consumers sourced cheaper fuel from across the border; however, recent crackdowns on cross-border sales have forced these large-scale buyers to turn to local retail outlets.
This unexpected push for bulk demand has severely strained the inventory intended for the general public.
10% increase in supplies
Meanwhile, state civil supplies commissioner K Kanna Babu told the media that there is no fundamental shortage of fuel, urging the public to refrain from panic buying. He said that the government is actively managing the situation through high-level consultations with major oil companies—including IOCL, HPCL, and BPCL—and the Andhra Pradesh Federation of Petroleum Traders.
To stabilise the market, Kanna Babu announced that oil companies have committed to increasing supplies by 10 per cent over April 2025 levels. Additionally, Joint Collectors have been tasked with monitoring the situation on the ground and providing immediate reports on any emerging supply issues.
Indian Oil issues 'no panic' assurance
Amidst the growing concern, Indian Oil also released a statement confirming that petroleum supplies remain uninterrupted nationwide.
A spokesperson revealed that petrol and diesel sales at retail outlets surged by over 13 per cent between April 1 and April 21, 2026. The company urged the public to remain calm, assuring customers that there is no need for panic-driven buying.