In a proactive move aimed at safeguarding government operations from potential fuel supply disruptions, the Odisha government has permitted departments to make advance payments to fuel stations for the supply of fuel to official vehicles. The decision comes amid growing concerns over global uncertainties triggered by the ongoing conflict in the Middle East.
The State Finance Department on Wednesday issued a notification authorising all government departments and Heads of Departments (HoDs) to make interest-free advance payments equivalent to two months’ estimated fuel expenditure.
Advance Payment Against Bank Guarantee
Under the new arrangement, the advance amount will be paid to designated fuel stations against an equivalent bank guarantee, ensuring financial security for the government while guaranteeing uninterrupted fuel supply for official vehicles.
Officials said the measure has been introduced as a precautionary step to prevent any disruption in administrative functioning if global geopolitical developments impact fuel availability or supply chains.
Ensuring Continuity of Government Services
The Finance Department noted that uninterrupted fuel availability is essential for the smooth functioning of government offices and field-level operations. The advance payment mechanism is expected to help departments maintain seamless mobility for official vehicles and ensure uninterrupted delivery of public services.
The decision reflects the government’s preparedness to address possible challenges arising from volatility in international fuel markets due to the ongoing Middle East crisis.
Example Provided by Finance Department
In a communication addressed to the Skill Development and Technical Education Department, officials highlighted that the department’s average monthly expenditure on petrol, oil and lubricants (POL) for government vehicles is approximately ₹1.54 lakh.
Based on this estimate, a fuel station supplying fuel to the department would need to furnish a bank guarantee of around ₹3 lakh to facilitate the advance payment arrangement covering two months of fuel requirements.
Departments Asked to Respond
The Finance Department has requested all departments to communicate their consent regarding the proposed mechanism at the earliest so that the arrangement can be implemented without delay.
Officials believe the initiative will provide an additional layer of preparedness and help government agencies continue functioning efficiently even if international developments lead to fluctuations in fuel supply or prices.
