Indian Oil ramps up Auto LPG supplies in Karnataka as private outlets shut

Bengaluru: State-run Indian Oil Corporation has stepped up Auto LPG supplies across Karnataka to address a surge in demand triggered by ongoing geopolitical disruptions that have impacted private sector operations.

Oil marketing companies (OMCs) together operate 72 Auto LPG Dispensing Stations (ALDS) in the state, of which Indian Oil accounts for 55 outlets. In contrast, over 300 ALDS run by private players have been affected, with nearly 80% reported to be non-operational under current conditions.

In response, Indian Oil has significantly increased supplies with support from the Government of India. The company’s average daily dispatches in Karnataka have risen from about 43.5 metric tonnes per day (MT/day) in February 2026 to 59.53 MT/day in March, and further to 68.53 MT/day from April 4.



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Despite the ramp-up, supply-side constraints persist due to limited dispensing infrastructure, capacity constraints at existing stations, and operational bottlenecks, making it difficult to fully bridge the gap left by private outlet closures.

Pricing differentials have also altered consumption patterns. PSU-operated outlets, including those run by Indian Oil, are retailing Auto LPG at Rs 89.52 per litre in Bengaluru, compared with Rs 99–105 per litre charged by private marketers. This gap has led to a shift in consumer preference towards PSU outlets, resulting in higher footfall and longer waiting times.


Also Read |Indian Oil ramps up auto LPG supply in Karnataka as private outlets shut

The company noted that around 70% of auto-rickshaws are equipped with dual-fuel systems, allowing them to switch between Auto LPG and petrol. Consumers have been advised to temporarily shift to petrol to ease pressure on LPG supplies, a trend already observed in markets such as Puttur and other regions with limited OMC-operated ALDS.

Indian Oil said Auto LPG continues to remain available across its network and reiterated its commitment to ensuring fuel availability and supporting customers amid heightened demand.