3 min readNew DelhiMay 24, 2026 06:17 AM IST
Amid reports of fuel retail outlets running out of petrol and diesel stocks in some pockets, the country’s largest oil marketing company (OMC) Indian Oil Corporation (IOC) assured consumers that there is no “overall shortage” of the two automobile fuels and the issues being faced at certain retail outlets are “highly localised and temporary”.
Indian Oil also said that the three OMCs —Bharat Petroleum and Hindustan Petroleum being the other two — are continuously monitoring the situation and taking necessary steps to address such “isolated situations”.
Fuel demand, particularly of diesel, is seeing a surge in certain pockets as a large number of bulk fuel consumers have shifted to public sector OMCs retail outlets due to a wide gap between retail prices — which are still below market rates — and the market-linked bulk prices, according to the government. On top of that, certain private sector fuel retailers are retailing the fuels at higher prices than the OMCs, leading to additional pressure on the latter’s retail network as consumers are preferring to buy from them. Higher fuel demand due to the crop harvesting season is also leading to additional demand pressure.
“Indian Oil wishes to reassure customers and the general public that there is no overall shortage of petrol and diesel in the country. The current situation being witnessed at certain retail outlets is highly localised and temporary in nature, arising due to local demand-supply imbalances and redistribution of sales patterns in select areas,” Indian Oil said Saturday.
“The higher demand being witnessed at some locations is attributable to the following factors: seasonal increase in diesel demand during the ongoing harvesting period; temporary shift of customers from certain private retail outlets owing to relatively higher retail prices at some private pumps; increased migration of institutional and commercial demand to PSU retail outlets, as bulk and institutional supplies are currently priced significantly higher in line with prevailing international market prices,” the company added.
These shifts are a major reason why the OMCs’ retail outlets in some areas are running out of fuel stocks faster than usual, leading to dry-out-like situations, according to industry sources. They said that the problem gets amplified when a supply constraint at one retail outlet leads to rumours of shortage in the area, and consumers start panic-buying from other outlets as well.
The visible migration of a large number of bulk consumers to OMCs’ retail stations, combined with higher agricultural season fuel demand, has led to a demand growth of 20% to 30% in some localised areas, Petroleum Ministry Joint Secretary Sujata Sharma had said on Thursday. “The price difference between diesel for bulk sales and that available at petrol pumps is Rs 40-42 per litre,” she said. The three OMCs together have a share of 90% in the fuel retail market.
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“Indian Oil would also like to highlight that during the period from 1–22 May 2026, the company recorded substantial growth in fuel sales over the corresponding period last year, with petrol sales increasing by 14% and diesel sales by around 18%. Despite this sustained and exceptionally high growth in demand, Indian Oil continues to consistently meet customer requirements across the country,” the refiner said, adding that instances of fuel supply disruption are limited to “a very small number” of its over 42,000 retail outlets.
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