Centre asks states to remain vigilant against bulk consumers at fuel pumps

New Delhi: Amid reports of some retail petrol and diesel outlets running dry, the Centre has directed states to remain vigilant against industrial and bulk consumers purchasing fuel from retail pumps, taking advantage of significant price differences.

Union Ministry of Petroleum and Natural Gas Secretary Neeraj Mittal chaired a virtual meeting on Friday with state Food and Civil Supplies officials to review the current fuel supply situation across the country.

In the meeting, Mittal stressed the need to prevent fuel hoarding, panic buying, and the diversion of industrial customers to retail outlets.

States were urged to take proactive measures to ensure uninterrupted fuel availability, strengthen coordination among stakeholders, and maintain smooth supplies for citizens.

The Ministry of Petroleum and Natural Gas stated in a post on X that India has adequate availability of petrol and diesel, with overall supplies remaining stable.

“Citizens are advised to avoid panic buying and purchase fuel only as per actual requirement. Temporary pressure at some retail outlets is being addressed through continuous supply monitoring and coordinated distribution efforts by Oil Marketing Companies,” the Ministry said.

“Responsible consumption and public cooperation will help ensure smooth fuel availability for everyone during the ongoing high-demand period.”

Joint Secretary in the Ministry of Petroleum and Natural Gas, Sujata Sharma, on Thursday told the media that a 20-30 per cent surge in fuel demand at retail outlets was triggered by bulk diesel consumers shifting from designated bulk supply points to retail pumps, lured by a price difference of Rs 40-42 per litre.

This shift, partly due to the ongoing agricultural season and partly driven by price arbitrage, led to temporary stock shortages at several outlets.

Retail fuel is currently sold below cost, while bulk supplies are priced at market rates, prompting bulk buyers — including state transport buses and telecom towers using diesel gensets — to prefer retail stations.

Demand has been notably higher at state-run outlets compared to private retailers due to the lower prices.

The government has appealed to citizens not to indulge in panic buying or believe rumours, and to purchase fuel only according to their actual needs.

The situation comes against the backdrop of global supply concerns arising from disruptions linked to the West Asia crisis.