If it rains in Britain do we need to put up Umbrellas in India ?

What has been rather underplayed in most Oil & Gas media reporting is the Petrol Crisis UK is currently going through. A BBC News story stated that on Sunday, the PRA which represents nearly 5,500 of the UK’s around 8,000 filling stations, reported up to two-thirds of outlets running out of fuel. On Tuesday afternoon, Prime Minister Boris Johnson said the situation was “now stabilizing” and things were “getting better on the forecourts”.
Shortage of truck drivers have allegedly led to shortage in the fuelling      stations. BP and Exxon Mobil Corp. have said that driver shortage affected operations at gas stations, EG Group is reported to have rationed to 30 pounds ($41) of fuel to customers which would be just enough to fill about one-third of a tank. Royal Dutch Shell Plc said that since Friday it has seen higher-than-normal demand across its network “which is resulting in some sites running low on some grades.” The matter is so serious that the government in UK is to issue foreign truck drivers with temporary work visas. It is said that 5,000 visas will be issued to drivers although this may be far from the approximately 100,000 heavy goods vehicle drivers the country requires as per estimates of Road Haulage Association, London. CNN Business has reported that the UK military is on standby to deliver gasoline to service stations. The government has proposed on Monday that British Army Tanker drivers had been “brought to a state of readiness” and could be used to deliver fuel where it is needed most. This prompted, Brian Madderson, Chair of the Petrol Retailers Association to state, calling in the military alone won’t be enough to resolve the crisis because soldiers may not have the training needed to refill storage tanks at service stations. It’s been surmised that panic buying, Brexit aftermath and a Cartel of Haulers are responsible for the current crisis. Mind you, all this is happening in United Kingdom, a developed country with sound transport systems, high levels of education and greater consumer knowledge amongst citizens.
Should this crisis in UK be of any concern for citizens of India ? The answer must surely be in the affirmative and citizens need to be afraid, very afraid. It cannot be denied that in India, sustained investments in the Oil & Gas Sector and efficient management has resulted in both excellent returns to the exchequer along with consumer satisfaction. There is definitely a felt need to move towards renewables and alternate sources of energy but till these become a practical functioning reality, Oil & Gas will continue to play a role in the life of the ordinary citizens of India. Successive Governments in India have strived for an Energy Democracy. To most Indian citizens an RO (Retail Outlet) or LPG Agency is the face of an Oil & Gas Company. They may however be unaware of the intricate, behind the scene operations undertaken by Oil & Gas Companies before Petrol/Diesel or LPG can actually be made available at the point of purchase. Numerous and extremely complex S&D operations have to be undertaken before the precious fuel reaches customers. Over the years, Oil & Gas Majors in India through sheer hard work, dedication, targeted Capex, adoption of latest Oil & Gas transport platforms, appropriately placed storage facilities, automation, optimal & cost effective sourcing of multiple types of crude to spot purchases of products have mastered this intricate art which enables customers to exercise their right to fuel. It is often proudly claimed that even during natural calamities when food, water and other essentials become scarce, Oil & Gas supplies at ROs are ensured and these rarely go dry.

The Government of India having announced its desire to quit doing businesses; the advisors, policy makers and other minions set their minds on suggesting a total, irrevocable and dogged annihilation of the Public Sector in Oil & Gas sphere as well. Many amongst them do not really have the requisite technical knowhow to assess correctly future Oil & Gas scenarios nevertheless just play along with fond hopes of prospective serendipitous events. They are blissfully unaware that tinkering with a precisely tuned piece of complex delivery system in one of the most strategic sectors of India could prove to be fatal to the economy as well national security.

The Government of India having announced its desire to quit doing businesses; the advisors, policy makers and other minions set their minds on suggesting a total, irrevocable and dogged annihilation of the Public Sector in Oil & Gas sphere as well. Many amongst them do not really have the requisite technical knowhow to assess correctly future Oil & Gas scenarios nevertheless just play along with fond hopes of prospective serendipitous events. They are blissfully unaware that tinkering with a precisely tuned piece of complex delivery system in one of the most strategic sectors of India could prove to be fatal to the economy as well national security. The Indian Oil & Gas industry  has over several decades honed almost to near perfection the art of catering to the energy needs of the consumers despite severe challenges. There is  a threat that precariously balanced system may fall to pieces if privatization in Oil & Gas sector is not handled properly. Though UK has tried to play down the current fuel crisis, one can envision its seriousness by the very fact that no less than The Prime Minister himself had to intervene with immediate, far reaching policy changes which have in turn  brought to the fore a host of associated issues. Pity the poor citizen, if such a mishap was to befall India. They have witnessed how the COVID pandemic wrecked civic life asunder. The specter of  ICU beds scarcity, Oxygen Famine, Lack of Life Saving Medicines and near collapse of the Health Infrastructure continues to haunt them. There are clear warning signals against fiddling with established systems set up by PSU Oil & Gas Sector which have a proven track record in wars, natural calamities and host of other crisis situations. Consequently, many citizens of India, have of late, started  taking the decision of wholesale privatization of the strategic Oil & Gas sector with a  large pinch of salt. If blanket privatization is forced on the Oil & Gas sector, S&D of fuels will undergo a sea change in India. If price controls remain in place, it will be a sort of non starter for most private players. The other option of true free market pricing of POL products shall bring countless miseries to the common man.

There are about 8,380 operational petrol stations in Britain, while in India, as of November 2017 there were 60,799 petrol stations. Most of  the petrol pumps in India are owned or operated by PSEs.  Expertise in  S&D, especially tight Fleet Management practices have ensured smooth supplies. However, with the advent of total privatization, the principle of profit as the sole basis of every decision and ‘Har ek paisa wasool’ logic coupled with tendency to monopolize will set in. It’s time that India  becomes sensitive to  the clear and present danger for a UK like playoff here too. (By Sidhartha Mukherjee.)