New Delhi, May 28: The central government has firmly stated that there is no shortage of petrol and diesel in the country. There is more than enough supply to meet domestic needs. The government clarified that any local pressure or perceived shortages are not due to an actual supply crisis, but rather a result of improper purchasing and hoarding of fuel.
According to the government, India ranks as the fourth-largest refining country in the world. Currently, 22 refineries operate within the nation, with a total capacity of 258.1 million tons per year. In the fiscal year 2025-26, India’s domestic consumption was 243.2 million tons, while 61.5 million tons of petroleum products were exported. This indicates that India not only meets its own needs but is also among the major exporters globally.
Union Minister of Petroleum and Natural Gas Hardeep Singh Puri is in constant contact with public sector oil marketing companies (PSU OMCs), state governments, and industry organizations to ensure a seamless supply of petrol and diesel. The government reported that the Petroleum Secretary has reviewed the situation with chief secretaries of states and union territories, as well as with FICCI and CII.
Despite the ongoing crisis in West Asia, the government has ensured that oil companies have not passed the full burden of international prices onto retail consumers. Currently, PSU OMCs are incurring a daily loss of approximately ₹550 crores on the sale of petrol, diesel, and domestic LPG. This relief is particularly aimed at ordinary families, farmers, and two-wheeler riders.
However, the government has expressed concern that some industrial consumers are purchasing fuel from retail petrol pumps instead of through industrial channels to take advantage of lower prices. This behavior is increasing pressure on the retail network designed for general consumers, leading to an artificial shortage in some areas.
Government data indicates that private oil companies have seen a nearly 38% drop in high-speed diesel (HSD) sales this month due to higher prices. Demand is now shifting entirely towards PSU retail outlets. Additionally, sales to PSU bulk customers have also dropped by about 29%, as they move towards retail pumps.
Taking this matter seriously, the government has urged states and union territories to form special teams to take strict action against hoarding, black marketing, unauthorized storage, and misuse of retail supply. Industry organizations have also been asked to educate their members about regulations and the consequences of violations.
The government has appealed to citizens to ignore rumors and rely solely on official information.
Leave a Comment