In a setback to Andhra Pradesh Chief Minister N. Chandrababu Naidu, the Centre on Tuesday rejected the state government’s request to procure diesel in bulk through retail fuel stations for construction works in Amaravati, citing an ongoing fuel shortage.
Responding to a letter from the state, the Centre clarified that drawing bulk quantities from retail outlets violates established supply and distribution norms.
It advised the Andhra Pradesh government to source fuel directly from oil marketing companies and asked it to withdraw the earlier orders issued to petroleum firms.
The Naidu government had recently directed oil companies to supply nearly 27.56 crore litres of diesel through retail pumps specifically for Amaravati construction activities, reportedly to speed up infrastructure work amid supply constraints.
However, the Centre maintained that retail outlets are meant for consumer-level distribution and not for bulk institutional procurement, which falls under a separate regulatory framework.
Meanwhile, the state is facing significant petrol and diesel shortages, with several districts reporting “No Stock” signs at fuel stations.
Long queues stretching several kilometres have been observed, reflecting stress in last-mile supply.
Naidu held a high-level teleconference to review the situation and instructed officials to ensure uninterrupted supply until normalcy is restored. He also reviewed dispatch logistics from oil companies and stressed strict monitoring.
To manage demand, the chief minister suggested introducing token systems at fuel stations and warned of strict action against fuel diversion or hoarding.
The government has also prioritised fuel supply for critical sectors such as agriculture and aquaculture, especially for paddy and aqua farmers who rely heavily on diesel for operations.