Odisha announces 2 months advance payment to fuel stations for petrol & diesel supply to govt vehicles

In a significant administrative decision, the Odisha government on Wednesday permitted advance payments to fuel stations for the supply of fuel to government vehicles in view of global uncertainties arising from the ongoing conflict in the Middle East.

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The move is intended to ensure the uninterrupted functioning of government departments and avoid any disruption in official operations.

According to a communication issued by the state Finance Department, all government departments and Heads of Departments have been authorised to make interest-free advance payments equivalent to two months’ estimated fuel expenditure.

The advance amount will be provided to designated fuel stations against an equivalent bank guarantee, ensuring financial safeguards for the government while securing continuous fuel availability.

The decision comes amid concerns that geopolitical tensions in the Middle East could affect global fuel markets and supply chains. By making advance arrangements, the State government aims to shield essential administrative services from any unforeseen disruptions in fuel supply.

In a letter written today to the Skill Development and Technical Education Department, officials noted that the department’s average monthly expenditure on petrol, oil, and lubricants (POL) for official vehicles is around Rs 1.54 lakh. Based on this estimate, a bank guarantee of approximately Rs 3 lakh would be required from the concerned fuel station to facilitate the advance payment arrangement.

The Finance Department has asked departments to convey their consent regarding the proposed mechanism at the earliest. Officials believe the proactive measure will help maintain seamless mobility of government vehicles and ensure uninterrupted delivery of public services, even in the event of fluctuations in fuel availability or prices.

“In view of the prevailing uncertainty arising out of the war situation in the Middle East, the State government has decided to allow all Departments and Heads of Departments to make interest-free advance payment equivalent to two months’ estimated fuel expenditure to the concerned fuel station against an equivalent amount of Bank Guarantee for uninterrupted supply of fuel to Government vehicles,” a notification issued in this regard said.