Fuel Supply Crisis in Andhra Pradesh Amid Iran-US Conflict

The ongoing conflict between Iran and the United States has triggered a fuel supply crisis in Andhra Pradesh, leading to the closure of over 400 petrol stations. Panic buying has ensued as residents rush to fill their tanks, causing significant disruptions in daily life across several cities. The Chief Minister has ordered immediate action to address the situation, while officials report that the closures are primarily due to panic rather than actual stock depletion. With the Strait of Hormuz's shipping routes affected, concerns about a broader energy crisis are rising, although the government assures that there is currently no fuel shortage in the country. Read on to find out more about the implications of this crisis.

By Narendra Chaudhary Apr 27, 2026, 20:07 IST

Impact of Iran-US Tensions on Fuel Supply

The ongoing conflict between Iran and the United States has raised concerns about global energy supplies, and India is beginning to feel the effects. In Andhra Pradesh, reports of fuel shortages have emerged, leading to the closure of over 400 petrol stations across various districts on Sunday. Following news of depleted stocks, residents flocked to other stations, resulting in long queues.

According to official sources, the state has 4,510 petrol stations, with 421 reporting a complete lack of petrol and diesel. Many stations are now limiting sales to just 2 liters for two-wheelers and 10 liters for cars. Gopal Krishna, president of the Andhra Pradesh Petrol Dealers Association, noted a significant shortage of diesel at several stations. He mentioned that while they typically sell over 7,000 liters of diesel, panic buying has surged to more than 14,000 liters.

Reports of shortages have disrupted daily life in cities like Vijayawada, Guntur, Rajahmundry, Kurnool, and Nellore. At some locations, disputes arose between drivers and petrol station staff as signs indicating stock shortages were posted. The transport system in the popular hill shrine of Tirumala was also affected, with two petrol stations running out of fuel. Some individuals waiting to refuel their bikes reported waiting for hours.

The surge in panic buying was fueled by viral social media posts over the weekend, suggesting that the Iran-US conflict would escalate and lead to fuel shortages. This prompted many to rush to petrol stations, resulting in excessive fuel purchases and subsequent shortages. Officials from the Chief Minister's office clarified that the closures of many outlets by Sunday afternoon were not due to stock depletion but rather to curb panic buying.

In response to the situation, Chief Minister Chandrababu Naidu has taken action, instructing district collectors to implement an immediate action plan to address the fuel shortage and report on measures taken by various departments by Monday evening. The Chief Minister also held a teleconference with Chief Secretary G. Sai Prasad and senior officials to assess the situation. Officials informed him that on Saturday, dealers received 10,345 kiloliters of petrol and 14,156 kiloliters of diesel, but panic buying led to overwhelming crowds at many outlets.

It is important to note that since the conflict began on February 28, the movement of ships through the Strait of Hormuz, a crucial global shipping route, has effectively halted. This strait is significant as it previously facilitated 20% of global oil trade, with India relying on imports for over 85% of its fuel needs, most of which passed through this route. The closure of this passage could exacerbate the energy crisis. However, the central government has stated that India is expanding its import options and that there is currently no fuel shortage in the country.