<p>New Delhi: Bulk diesel consumers are shifting purchases to retail petrol pumps, exploiting a massive Rs 40-42 per litre price difference, causing a 20-30% surge in demand and temporary stock shortages at some outlets in some parts of the country, the government said on Thursday.</p>.<p>The government, however, has assured that overall fuel supplies remain ample and stable, with refineries operating at optimum capacity to meet domestic needs.</p>.<p>Demand at some petrol pumps has risen 20-30%, driven partly by the agricultural season and partly by bulk consumers moving purchases to retail pumps, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, told media here. This is primarily why a few petrol pumps in some areas are facing a dry-out-like situation.</p>.<p>She noted that fuel at retail petrol pumps is being sold below cost, while bulk supplies are priced at market rates. Bulk buyers, including state road transport buses and telecom towers using diesel gensets, are expected to procure from bulk depots, but the price arbitrage has prompted a shift to retail stations. </p>.<p>Demand has also been higher at state-run outlets compared to private retailers due to lower prices.</p>.<p>Petrol pumps typically maintain stocks for two to three days. A sudden 20-30% jump in sales, combined with last-mile logistics challenges, has led to temporary shortages at certain locations, Sharma explained.</p>.Centre says no fuel shortage, appeals public to avoid panic buying.<p>The government is closely monitoring high-demand outlets and coordinating with state administrations and local police as needed. Sharma reiterated that claims of any shortfall in petrol or diesel supplies are incorrect, as the country’s production and inventory levels are adequate to meet demand.</p>.<p>Sharma appealed to citizens not to indulge in panic buying or believe rumours, urging them to purchase fuel only as per their needs.</p>.<p>The remarks come against the backdrop of global supply concerns stemming from disruptions linked to the West Asia crisis.</p>.<p>"Our refineries are operating at optimum capacity to meet the demand of the country. India's monthly diesel production stands at around 10 million tonnes against consumption of about 8.5 million tonnes," she added.</p>.<p>On the LPG front, she said refineries have ramped up output to 46,000-47,000 tonnes per day by diverting streams from petrochemicals. The government has prioritised household cooking needs over industrial use amid import challenges through the Strait of Hormuz.</p>.<p>The Centre had earlier compensated oil marketing companies with Rs 22,000 crore in 2023 and Rs 30,000 crore last year for losses on subsidised LPG sales.</p>
<p>New Delhi: Bulk diesel consumers are shifting purchases to retail petrol pumps, exploiting a massive Rs 40-42 per litre price difference, causing a 20-30% surge in demand and temporary stock shortages at some outlets in some parts of the country, the government said on Thursday.</p>.<p>The government, however, has assured that overall fuel supplies remain ample and stable, with refineries operating at optimum capacity to meet domestic needs.</p>.<p>Demand at some petrol pumps has risen 20-30%, driven partly by the agricultural season and partly by bulk consumers moving purchases to retail pumps, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, told media here. This is primarily why a few petrol pumps in some areas are facing a dry-out-like situation.</p>.<p>She noted that fuel at retail petrol pumps is being sold below cost, while bulk supplies are priced at market rates. Bulk buyers, including state road transport buses and telecom towers using diesel gensets, are expected to procure from bulk depots, but the price arbitrage has prompted a shift to retail stations. </p>.<p>Demand has also been higher at state-run outlets compared to private retailers due to lower prices.</p>.<p>Petrol pumps typically maintain stocks for two to three days. A sudden 20-30% jump in sales, combined with last-mile logistics challenges, has led to temporary shortages at certain locations, Sharma explained.</p>.Centre says no fuel shortage, appeals public to avoid panic buying.<p>The government is closely monitoring high-demand outlets and coordinating with state administrations and local police as needed. Sharma reiterated that claims of any shortfall in petrol or diesel supplies are incorrect, as the country’s production and inventory levels are adequate to meet demand.</p>.<p>Sharma appealed to citizens not to indulge in panic buying or believe rumours, urging them to purchase fuel only as per their needs.</p>.<p>The remarks come against the backdrop of global supply concerns stemming from disruptions linked to the West Asia crisis.</p>.<p>"Our refineries are operating at optimum capacity to meet the demand of the country. India's monthly diesel production stands at around 10 million tonnes against consumption of about 8.5 million tonnes," she added.</p>.<p>On the LPG front, she said refineries have ramped up output to 46,000-47,000 tonnes per day by diverting streams from petrochemicals. The government has prioritised household cooking needs over industrial use amid import challenges through the Strait of Hormuz.</p>.<p>The Centre had earlier compensated oil marketing companies with Rs 22,000 crore in 2023 and Rs 30,000 crore last year for losses on subsidised LPG sales.</p>
