The oil companies in turn underline that the 30 per cent increase in demand is the reason for the shortage.

Sqn Ldr Bhushan Narang, president of Bangalore Petroleum Dealers Association says, “The quota supply came into effect on July 1. But we are actually receiving 10 per cent more than what we sold in July last year. But the demand is very high due to the worsening power situation in the State. People are purchasing diesel for use in generators.

With several diesel dispensing outlets going dry, not only in the city, but also across the State, the petroleum dealers say PSU oil companies that presently close their depots at 2 pm should keep it open upto 6 pm to contain the crisis.

High consumption

About 4.75 lakh kilo litres of diesel is sold in Karnataka every month, of which approximately 75,000 kilo litres is sold in Bangalore alone.

A senior official of the Indian Oil Corporation (IOC) said that the increase in the consumption rate of diesel after July 14 is between 20 and 25 per cent. Also, the oil companies were distributing it despite the rise in prices of petroleum products and the loss suffered by the companies. “We are looking to tide over this crisis,” they added.
Meanwhile, the Federation of Karnataka State Lorry Owners and Agents Association (FKSLOAA) has termed the crisis of diesel shortage as Centre’s revenge against the newly elected BJP government in the State. “The transport sector will be the worst hit, if the shortage in diesel supply continues,” said G R Shanmugappa, president of FKSLOAA.

Don’t panic

The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has urged the industries not to panic, as the oil companies have assured of adequate supply of diesel.

In a release the FKCCI said, “The demand for diesel has suddenly shot up by 25 per cent in July 2008 and 40 per cent in the last couple of days due to power interruption.”