No fuel shortage in Karnataka, oil firms urge public to avoid panic buying

Bengaluru: There is no shortage of petrol or diesel in Karnataka and all retail outlets across the state are functioning normally, according to Siddhartha Agarwal, Executive Director of Indian Oil Corporation and nodal officer for Karnataka Oil Marketing Companies.



Addressing a media conference in Bengaluru on Thursday, Agarwal said the fuel supply chain—from refineries to terminals, depots and retail outlets—is operating smoothly without disruption and the overall supply situation remains stable and under control.




Karnataka has a robust petroleum infrastructure network, including a refinery with a crude oil processing capacity of 15 million metric tonnes per annum (MMTPA), he said. The briefing was attended by officials from Bharat Petroleum, IOCL and GAIL India.


On domestic LPG supplies, Agarwal said Karnataka is receiving adequate and continuous supply. LPG bookings had surged to 3.75 lakh per day in March 2026 amid panic buying, resulting in temporary delays in deliveries. The situation has since eased, with bookings declining to 3.06 lakh per day and delivery timelines gradually improving.


Digital adoption in LPG services has risen sharply, with 94.5% of bookings now being made online. Compliance with the Delivery Authentication Code (DAC) system has also improved, enhancing transparency and ensuring cylinders are delivered to the intended consumers.


On commercial LPG, priority is being given to essential services such as hospitals, educational institutions and transport, in line with directives issued by the Karnataka government in March 2026. Officials also pointed to steady growth in CNG consumption and expansion of City Gas Distribution networks.


Agarwal said 5-kg LPG cylinders are being promoted for economically weaker sections and migrant populations, as these can be purchased without a regular gas connection. Awareness camps are being conducted across the state.


Authorities have stepped up action against hoarding and black marketing. The state government and oil companies have conducted over 3,700 inspections and investigations so far, leading to 35 FIRs, 37 arrests and multiple seizures.
Auto LPG demand at oil marketing company outlets has increased due to reduced operations by private players. OMCs currently account for only around a fifth of Karnataka’s Auto LPG market but are working to meet the additional demand despite infrastructure constraints.


The companies said they are closely monitoring the situation in coordination with the Centre and the Karnataka government and are prepared to handle any further surge in demand. Citizens have been advised against panic buying and urged to rely on official communication channels.


Sanjay Kumar Singh, General Manager at GAIL, said 5.01 lakh PNG connections have been provided across the country since the onset of the West Asia crisis. Discussions are underway with hotel associations and apartment owners to further expand the PNG network.