In the first two weeks of June, diesel demand in India grew rapidly, preliminary data on Wednesday showed, with long queues at some petrol stations amid heightened concerns over a supply glut.
Data show that from June 1 to 14, state-controlled retailers sold a total of 3.4 million tons of diesel, a year-on-year increase of 47.8% and a year-on-year increase of 12%. The gasoline sales were 1.28 million tons, a year-on-year increase of 54.2%.
On Wednesday, the government played down concerns about fuel supplies, saying unprecedented demand growth had created some temporary logistical problems in more remote areas.
“The increase in demand is due to a seasonal surge in demand due to agricultural activity, and bulk buyers have shifted purchases to retail stores,” the Ministry of Oil and Gas said in a statement.
State-run Indian Oil Corporation, Hindustan Petroleum Corporation and BPCL own about 90% of the country’s fuel retail stores.
“Oil companies can address these issues by increasing inventories in warehouses and terminals, increasing the number of trucks servicing retail stores, and extending warehouse and terminal hours,” the Union Petroleum Ministry said.
“The companies are ensuring that there are sufficient gasoline and diesel supplies to meet this additional demand,” the ministry said.