New Delhi, May 27: The central government has firmly stated that there is no shortage of petrol and diesel in the country, and there is more than enough supply to meet domestic needs. The government clarified that any local pressure or perceived shortage in certain areas is not due to an actual supply crisis but rather the result of improper purchasing and hoarding of fuel.
According to the government, India is the fourth-largest refining country in the world, with 22 refineries currently operating and 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 during the same period. This indicates that India is not only meeting its own needs but is also among the major exporters globally.
Union Minister of Petroleum and Natural Gas Hardeep Singh Puri is in continuous contact with public sector oil marketing companies (PSU OMCs), state governments, and industry organizations to ensure uninterrupted supply of petrol and diesel. The government has reported that the Petroleum Secretary has also reviewed the situation with the Chief Secretaries of states and Union Territories, as well as with FICCI and CII.
Despite the ongoing crisis in West Asia, the oil companies have not passed the entire burden of international prices onto retail consumers, providing relief to the general public. Currently, PSU OMCs are incurring losses of approximately ₹550 crore per day on the sale of petrol, diesel, and domestic LPG. This relief is especially aimed at common 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 is putting pressure on the retail network meant for ordinary consumers, creating an artificial shortage in some areas.
Government data indicates that the sales of high-speed diesel (HSD) by private oil companies have fallen by about 38% this month due to higher prices, with demand shifting entirely towards PSU retail outlets. Meanwhile, sales to bulk customers of PSUs have also seen a decline of about 29%, as they are moving towards retail pumps.
Taking this matter seriously, the government has urged states and Union Territories to form special teams and 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 the regulations and the consequences of violations.
The government has appealed to citizens not to pay attention to rumors and to rely solely on official information.