Bhopal Municipal Corporation Halts In-House Fuel Supply Amid Price Volatility

Bhopal Municipal Corporation Halts In-House Fuel Supply Amid Price Volatility

The Bhopal Municipal Corporation has suspended in-house fuel supply and redirected its fleet of around 1,700 vehicles to police-run pumps amid sharp fuel price fluctuations. Daily operations, including garbage trucks and tankers, continue using alternate refuelling sites. Officials said rising global oil volatility has pushed daily expenditure beyond ₹15 lakh.

Utsav GuptaUpdated: Sunday, April 12, 2026, 10:19 PM IST
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Bhopal Municipal Corporation Halts In-House Fuel Supply Amid Price Volatility |

Bhopal (Madhya Pradesh): The Bhopal Municipal Corporation (BMC) has suspended fuel supply from its in-house diesel pump located on Link Road No 3 following sharp and unpredictable fluctuations in fuel prices.

All approximately 1,700 municipal vehicles have now been directed to procure diesel and petrol from police-operated fuel stations across the state capital.

According to the BMC, the new arrangement came into effect late Saturday night.

By Sunday morning, most BMC vehicles, including garbage collection trucks, water tankers and heavy machinery, were seen refuelling at designated police pumps. Key locations include stations near the 25th Battalion on Bhadbhada Road, opposite Lal Parade Ground and in Kokta Transport Nagar.

The move ensured that essential civic services remained uninterrupted despite the abrupt suspension of supply from the municipal depot. Officials attributed the decision to extreme volatility in global oil markets, largely triggered by geopolitical tensions, particularly the ongoing Iran-Israel conflict.

Global tensions drive price spike

Until recently, petroleum companies were supplying diesel to the BMC at around Rs 82 per litre. This rate rose to Rs 90 during January and February, before being aligned with fluctuating market prices. However, in the past few days, suppliers reportedly began revising rates almost daily, with the last fuel tanker delivered at an unprecedented Rs 142 per litre. The steep and erratic hike prompted BMC authorities to immediately halt further procurement under the existing arrangement.

Agreement with Police Department

Following two days of deliberations, BMC officials reached a temporary agreement with the Police Department to ensure uninterrupted fuel supply. Under this arrangement, municipal vehicles will be refuelled daily at prevailing market rates from police-run pumps. Fuel indents have already been issued to drivers, authorising them to access these facilities. Officials confirmed that a formal Memorandum of Understanding (MoU) between the two agencies is likely to be signed on Monday, formalising the interim arrangement.

Fleet consumption remains high

The Municipal Corporation operates a large fleet of around 1,700 vehicles, collectively consuming nearly 18,000 to 19,000 litres of diesel every day. This translates to an estimated daily expenditure exceeding Rs 15 lakh. The demand has further surged due to the deployment of heavy equipment such as bulldozers and cranes for intensified drain-cleaning and sanitation drives ahead of the monsoon.

Temporary arrangement

Speaking with Free Press BMC commissioner Sanskriti Jain said that with the municipal fuel station remaining non-operational for now, the alternative arrangement with police pumps is expected to continue until fuel prices stabilize and a more viable procurement mechanism is established.