Industrial consumers in India are increasingly purchasing diesel from retail fuel stations instead of designated bulk supply channels, exploiting lower pump prices and triggering shortages in some regions, a senior government official said on Thursday.
The shift comes as diesel prices for bulk buyers have risen 40–42 rupees per litre above retail rates, making state-run fuel stations a cheaper alternative. Retail diesel in New Delhi is currently priced at 91.58 rupees per litre.
The surge in purchases has intensified pressure on state-owned fuel retailers, including Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp, which are already selling diesel below market prices to retail consumers.
Federal oil ministry official Sujata Sharma said authorities are urging industrial customers to use bulk distribution points while reserving retail outlets for ordinary consumers, as companies monitor shortages and seek support from local administrations and police.
Preliminary data showed diesel sales by Indian state retailers climbed nearly 11.5% year-on-year to about 3.8 million metric tons between May 1 and 15, while gasoline demand rose almost 19% to 1.8 million tons.
Higher diesel consumption has also been linked to elevated prices at private fuel retailers and increased use of diesel-powered irrigation generators by farmers during the harvesting season.
Bharat Petroleum reported gasoline sales increased 16.38% to 1 million kilolitres between May 1 and 20, while diesel sales advanced 16.7% to around 1.7 million kilolitres.
The company said it is prioritising uninterrupted fuel supplies to smaller cities and remote areas, where precautionary buying and localised demand spikes have become more evident in recent days.