Efforts being made to ensure adequate fuel supply at petrol pumps, says govt official

New Delhi: Demand has surged at fuel stations operated by state-run oil companies in some areas due to higher prices at private sector pumps, as well as a shift by bulk consumers to retail outlets, a petroleum ministry official said on Thursday, following multiple reports of fuel stations running dry in some states.

"Efforts are being made to ensure adequate supplies at pumps," Sujata Sharma, joint secretary in the petroleum ministry, said. The country has sufficient supplies of crude, petrol, diesel and natural gas, she added.

Fuel stations are also witnessing stronger sales growth due to higher farm-related demand, she said.


Private fuel retailers such as Nayara Energy and Shell have raised prices significantly to discourage sales at their outlets and shift demand to outlets operated by other companies.

Petrol and diesel sales at Nayara, India's largest private fuel retailer, plunged 30% and 46% year-on-year, respectively, in April, while sales at state-run retailers rose nearly 9% for both fuels, according to industry data. Shell's diesel sales collapsed 77% in April.

At current pump prices, state companies are incurring losses on every litre of fuel sold.

Bulk diesel supplies are about ₹40-42 per litre more expensive than retail fuel, prompting many bulk customers to shift their purchases to fuel stations, Sharma said, while urging them to return to their regular bulk supply channels.