Industrial Diesel Price Hike Sparks Shortage Concerns
A sharp jump in industrial diesel prices is quietly disrupting fuel supply across the State, pushing up demand for regular diesel and triggering short-term shortages at petrol pumps.
Over the past few days, long queues outside fuel stations have raised concerns among consumers. While officials say there is no real shortage, ground reports suggest supply has tightened due to shifting demand patterns.
The issue began after global supply disruptions forced oil companies to rethink pricing. Instead of increasing retail fuel prices, companies raised rates for industrial diesel. On March 20, prices jumped 25%, and by mid-April, they had climbed nearly 50% to ₹149 per litre.
This created a wide price gap between industrial and regular diesel, leading many industrial users to turn to retail fuel as a cheaper alternative. “When the difference is this high, diversion is bound to happen,” a fuel dealer said.
Sources say diesel meant for public sale has been rerouted to industrial buyers through unofficial channels, with dealers making margins of ₹10 to ₹15 per litre. In response, oil companies imposed limits on how much fuel could be sold per customer and reduced supply to outlets.
“The restrictions started at 300 litres and were later cut to 100 litres. Even then, demand hasn’t come down,” a petrol pump operator said.
Adding to the pressure, companies are reportedly holding back supplies amid expectations of a broader fuel price hike after elections in several States. This has further tightened availability.
“The supply drop over the last few days is real. That’s why you’re seeing queues,” a transport operator said.
The State government stepped in after the situation escalated, stating that stocks are sufficient and that supplies have now stabilised. Officials say the recent rush was temporary and driven by panic and uneven distribution.
Still, uncertainty remains. Fuel station owners say industrial diesel prices could go up again by about ₹6 per litre. If that happens, the gap between industrial and retail diesel will widen further, raising the risk of continued diversion and supply strain.
For now, the immediate crisis may have eased, but the underlying issue remains unresolved.