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Retail Fuel Outlets Face Strain Amidst Bulk Diesel Shift
Fuel retail outlets across several regions are grappling with supply shortages. The cause is a significant migration of industrial and commercial consumers who have abandoned traditional bulk diesel procurement. These buyers are now favoring the cheaper retail fuel stations operated by public sector oil marketing companies. Sujata Sharma, Joint Secretary in the Oil Ministry, confirmed this trend, stating, "Bulk supplies of diesel are shifting to retail. Demand is shifting to government companies, and we have sufficient supplies."
Price Disparity Fuels Demand Surge
The price difference between bulk and retail diesel is a staggering ₹40-42 per liter, incentivizing this shift. This price disparity, coupled with increased consumption from the farm sector, has led to a 20-30% jump in sales at some retail outlets. "Petrol pumps generally have stocks of 2-2.5 days, and if they witness 20-30 per cent demand growth, they may temporarily face some (supply) issues. There are last-mile logistics connectivity issues," Sharma explained.
Ministry Assures Overall Supply Stability
Despite global geopolitical tensions impacting imports, the Ministry of Petroleum and Natural Gas maintains that India possesses ample supplies of petrol, diesel, LPG, and natural gas. Steps have been taken to alleviate the burden on citizens. India's liquefied petroleum gas (LPG) production has seen a slight increase, rising to approximately 46,000-47,000 tonnes per day (TPD) from around 45,000-46,000 TPD last month. This uptick is partly attributed to the resumption of Nayara Energy’s Vadinar refinery operations after scheduled maintenance.
Refinery Operations and LPG Production
"We have a sufficient supply of crude oil, natural gas, petrol, and diesel. Our refineries are operating at optimum capacity to meet the country’s demand," Sharma stated. LPG production has been ramped up, with current output at around 46,000-47,000 TPD. LPG supply remains stable, with 1.34 crore domestic cylinders delivered in the last three days against 1.32 crore bookings. Commercial LPG supply since May 1 has been around 13,32,000 tonnes. Auto LPG sales and smaller cylinder sales also remain consistent.
Natural Gas Sector Expansion Continues
The natural gas sector continues its expansion, with 7.64 lakh PNG connections gasified since March. Infrastructure is in place for an additional 2.81 lakh connections, and 7.99 lakh new customers have registered.