India Says No Fuel Shortage, PSU Firms Taking Rs 550 Cr Daily Hit

India said there is no shortage of petrol or diesel in the country and supplies remain fully adequate for both retail and industrial demand. India has refining capacity of 258.1 million tonnes per year across 22 refineries.

Domestic petroleum consumption stood at 243.2 million tonnes in FY26, while exports of refined petroleum products reached 61.5 million tonnes, making India one of the world’s largest fuel exporters.

Petroleum Minister Hardeep Singh Puri is reviewing the situation regularly with PSU oil companies, states and industry bodies to ensure uninterrupted fuel supply across the country.

The government said PSU oil marketing companies are currently absorbing losses of nearly Rs 550 crore per day on petrol, diesel and domestic LPG sales to protect retail consumers from higher global crude prices during the West Asia tensions.

Officials said some industrial consumers are shifting purchases from industrial supply channels to retail fuel pumps to take advantage of lower retail prices. This is creating temporary local shortages in some areas despite overall adequate supply.

Private oil companies have seen around 38% decline in diesel sales this month due to higher pricing, with demand shifting to PSU retail outlets. PSU bulk customer sales have also fallen nearly 29% as buyers move towards retail pumps.

The government has asked states and union territories to form special squads and take strict action against fuel diversion, black marketing, unauthorised stocking and misuse of retail fuel supplies under the Essential Commodities Act.