Bhubaneswar: In response to growing uncertainty over fuel supplies triggered by the ongoing conflict in West Asia, the Odisha government has allowed all departments to make advance payments for two months’ fuel expenditure to designated petrol stations.
The Finance Department has formally communicated the decision.
Official sources confirmed that departments and heads of departments are now permitted to release interest-free advance payments based on estimated petroleum, oil, and lubricants (POL) expenses for two months. These payments are to be made against equivalent bank guarantees from the fuel stations, which will in turn provide guarantees to ensure uninterrupted fuel supply for government vehicles.
For instance, sources in the Skill Development and Technical Education Department noted that its average monthly POL expenditure for vehicles stands at around ₹1.54 lakh. The department has accordingly sought a bank guarantee of ₹3 lakh from Kalinga Fuel Station in Bhubaneswar.
This proactive measure comes as escalating tensions in West Asia, particularly direct confrontations between the US and Iran involving missile and drone exchanges, have disrupted key energy infrastructure and shipping routes.
Analysts warn that prolonged disruptions could further strain fuel availability and prices, prompting state governments like Odisha to secure supplies through such financial safeguards. The move aims to maintain essential government operations, including mobility for official vehicles, without interruptions.
