Demand for diesel is increasingly shifting from bulk buyers to retail outlets operated by government oil companies, but the country has sufficient fuel supplies to meet demand, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said on Thursday during an inter-ministerial press briefing on the situation in West Asia.
"Bulk supplies of diesel are shifting to retail. Demand is shifting to government companies, and we have sufficient supplies," Sharma said. She added that India currently has sufficient supplies of petrol, diesel, LPG and natural gas despite global geopolitical tensions impacting imports, and said the government has taken steps to reduce the burden on citizens.
"Our imports are impacted, but the Government of India made efforts to reduce the burden on citizens," Sharma said. The official said LPG production has been ramped up to meet rising demand across the country. Sharing operational updates, Sharma said around 1.34 crore LPG cylinders were delivered, while commercial LPG sales stood at 23,588 tonnes.
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. Furthermore, LPG production has been ramped up at the refineries, with around 46-47 thousand tonnes of #LPG being produced in… pic.twitter.com/e1IYfCvtXM
— PIB India (@PIB_India) May 21, 2026
On the natural gas front, she said 7.99 lakh new customers have been registered. The official also detailed enforcement action being taken to monitor fuel distribution and prevent irregularities. "Five hundred raids conducted, 111 show cause notices issued, 35 distributors got notice and one suspended," Sharma said.
Earlier, OMC sources had told ANI that India continues to remain surplus in petroleum products and there is no shortage of petrol, diesel or LPG in the country. "There is no shortage of petrol/diesel/LPG as India is a net exporter and surplus in petroleum products," according to OMC sources.
The sources added that higher sales at some retail outlets were being seen due to seasonal demand and pricing shifts in the market.On crude oil imports, the sources said supplies from Russia remain stable despite ongoing geopolitical tensions in West Asia and concerns over global energy supply disruptions. "There is no reduction in crude oil coming from Russia," the sources added.
Published on May 21, 2026