New Delhi: The government on Thursday said some regions of the country are witnessing a 20–30 percent increase in diesel demand, driven by the agricultural season, a shift in diesel sales from bulk consumers to retail outlets, and price differences between public and private fuel retailers.
“Fuel demand has risen in some regions, driven by the agricultural season, a shift of bulk diesel to retail supply, and price differences between public and private oil companies,” Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, told an inter-ministerial press briefing Thursday.
She added, “Despite this, supply remains adequate, and steps are being taken to ensure uninterrupted availability at all petrol pumps.”
The surge in demand at retail outlets is also linked to the price differential between bulk and retail diesel. Sharma said the gap between the two stands at Rs 40–42 per litre in some regions.
Bulk diesel is sold directly by state-owned oil marketing companies, private refiners such as Reliance and Nayara Energy, and authorised wholesale industrial distributors. Major bulk consumers include Indian Railways, transport operators and manufacturing facilities.
Fuel supplies across IndianOil’s retail network remain stable. IndianOil has not issued any instructions for rationing of fuels at retail outlets, and supply operations across the country continue smoothly.
The recent increase in demand is driven by higher diesel consumption… pic.twitter.com/e6Y4XqpjWi
— Indian Oil Corp Ltd (@IndianOilcl) May 21, 2026
Amid concerns over fuel shortage, Indian Oil Corporation (IOC) sought to reassure consumers in a post on X Thursday.
“We urge customers to refuel their vehicles as per normal requirement. We are committed to maintain smooth supply chain logistics for Petrol & Diesel,” the company said.
The post added, “However, with the increase in demand due to shift from Commercial Sales & Private Petrol Pumps to Retail Outlets, pressure on the logistics has occurred, which our team is trying to address.”
On domestic liquefied petroleum gas (LPG) supplies, Sharma said India is currently producing around 46,000–47,000 tonnes of LPG every day.
“In the last three days, 1.34 crores of domestic LPG cylinders have been delivered across the country,” Sharma said.
The government also said supplies of commercial LPG remain robust. Between 1 May and 20 May, nearly 1.32 lakh tonnes of commercial LPG were delivered across the country.
Highlighting efforts to expand piped natural gas (PNG) coverage, Sharma said nearly 7.64 lakh domestic PNG connections have been activated since March. Infrastructure has been laid for 2.81 lakh additional connections, while 7.99 lakh new customers have been registered.
Separately, Mukesh Mangal, Additional Secretary at the Ministry of Ports, Shipping and Waterways, said 13 Indian-flagged vessels and one Indian-owned vessel continue to remain stranded near the Strait of Hormuz.
He also said shipping rates from the Middle East region have declined over the past month.
“Shipping rates to the Middle East have also eased, with the cost for a 20-foot container declining from around USD 2,400 on 15 April to nearly USD 2,000 by 19 May,” Mangal said.
On the resumption of shipping operations in the region, Mangal said the ministry is in touch with the Ministry of External Affairs and that vessels will be sent back once approvals are received and conditions become conducive.
(Edited by Ajeet Tiwari)
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