**Executive Summary**
The Government of India and the Government of Maharashtra have issued an assurance of uninterrupted fuel supplies across the state despite a significant surge in demand during May 2026. The surge, driven by agricultural activity and price disparities between public and private retailers, has prompted the government to intensify enforcement against hoarding and black marketing. State authorities have conducted hundreds of raids and seized unauthorized stocks to maintain market stability and ensure adequate fuel availability.
**Key Points / Main Content**
**Fuel Demand and Supply Trends (May 2026)**
* **Significant Growth:** Between May 1 and May 31, 2026, PSU Oil Companies supplied 569 Thousand Kilo Litres (TKL) of petrol and 1,157 TKL of diesel.
* **Growth Rates:** Petrol demand increased by 8.92% and diesel by 20.1% compared to the previous year.
* **Abnormal Diesel Surge:** A 43.37% growth in diesel demand was recorded between May 22 and May 28, attributed to peak agricultural activity and panic buying.
**Drivers of Increased Demand**
* **Agricultural Activity:** Seasonal farming requirements across various districts significantly raised diesel consumption.
* **Private to PSU Migration:** Customers shifted from private retailers (like Nayara and Shell) to PSU outlets due to a price differential of approximately ₹5 per litre for petrol and ₹3 per litre for diesel.
* **Industrial Shift:** Institutional and industrial consumers moved to retail outlets due to a massive price gap of approximately ₹30 per litre.
**Government Enforcement and Monitoring**
* **Vigilance Teams:** District Collectors have formed mobile vigilance teams to conduct inspections under the Essential Commodities Act, 1955.
* **Enforcement Results:** Authorities conducted 495 raids, resulting in 17 FIRs, 18 arrests, and the seizure of 77,715 litres of diesel and 1,134 litres of petrol.
* **Continuous Oversight:** The State Level Coordinator and PSU OMCs (BPCL, IOCL, and HPCL) are holding regular review meetings to monitor supply chains and prevent disruptions.
**Impact Analysis**
**Citizens and Consumers**
**Impact:** Assured of the availability of petrol, diesel, and LPG despite global supply chain tensions and local demand spikes.
**Action Required:** Refrain from panic buying or hoarding petroleum products.
**PSU Oil Marketing Companies (BPCL, IOCL, HPCL)**
**Impact:** Experiencing high sales volumes and pressure from customers migrating from private fuel retailers.
**Action Required:** Continuously monitor supply operations and maintain adequate stocks to ensure uninterrupted availability at retail outlets.
**District Collectors and State Enforcement Teams**
**Impact:** Responsible for maintaining law and order regarding fuel distribution and preventing illegal trade.
**Action Required:** Constitute vigilance teams, conduct daily enforcement drives/raids, and take legal action against unauthorized hoarding.
**Private Fuel Retailers (Nayara and Shell)**
**Impact:** Losing market share (approximately 5%) and seeing a diversion of sales to nearby PSU outlets due to higher pricing.
**Action Required:** No specific action mentioned in the document for these stakeholders beyond the observation of their sales diversion.
Key Entities Referenced
Maharashtra: The primary state where the surge in fuel demand is occurring and where government enforcement measures against hoarding are being implemented.
Essential Commodities Act, 1955: The legislative framework used by the state government to conduct inspections, raids, and seizures to prevent the black marketing of petroleum products.
Public Sector Oil Marketing Companies (BPCL, IOCL, HPCL): The state-owned entities responsible for ensuring uninterrupted supply and monitoring the availability of petrol, diesel, and LPG across the region.
Ministry of Petroleum & Natural Gas: The central ministry overseeing fuel supply stability and the coordination between oil marketing companies and state authorities.
State Level Coordinator (Oil Industry), Maharashtra: The designated authority responsible for coordinating between the oil industry and the state government to ensure stable fuel stocks.
Ministry of Petroleum & Natural Gas
Public Sector Oil Marketing Companies ensure
uninterrupted Fuel Supplies amid demand surge
in Maharashtra
State Government intensifies measures against hoarding and
black marketing of Petroleum Products
Posted On: 01 JUN 2026 5:52PM by PIB Mumbai
Mumbai, 1 June 2026
Amid ongoing geopolitical tensions in the Middle East impacting global supply chains, the
Government of India, Government of Maharashtra and Public Sector Oil Marketing Companies
(BPCL, IOCL and HPCL), under the coordination of the State Level Coordinator (Oil Industry),
Maharashtra, Shri Mihir Ganesh Joshi, have assured citizens that adequate stocks of petrol,
diesel and LPG are available across Maharashtra. Fuel supplies across the State continue to
remain stable, closely monitored and uninterrupted.
The PSU Oil Marketing Companies have assured that adequate stocks of petrol and diesel are
available across Maharashtra and that supply operations are being continuously monitored to
ensure uninterrupted availability.
During the period from 1 May to 21 May 2026, PSU Oil Companies recorded strong growth in
fuel sales compared to the corresponding period of the previous year. Petrol demand increased
by 18.54 %, while diesel demand increased by 22.3 %. During this period, a total of 402
Thousand Kilo Litres (TKL) of petrol and 789 Thousand Kilo Litres (TKL) of diesel were supplied
across Maharashtra.
The significant increase in fuel demand has been driven by seasonal agricultural activity across
multiple districts. Additional demand pressure has also emerged due to migration of customers
from private fuel retailers to PSU retail outlets owing to lower fuel prices. Nayara retail outlets,
which account for approximately 5 % market share, along with Shell outlets, have witnessed
diversion of sales to nearby PSU OMC outlets due to a price differential of approximately ₹5 per
litre in petrol and ₹3 per litre in diesel. A partial shift of institutional and industrial consumers to
retail fuel outlets has also been observed due to an approximate price differential of ₹30 per
litre.
During the period from 22 May to 28 May 2026, heightened agricultural activity coupled with
panic buying and hoarding by consumers anticipating a further increase in petroleum product
prices led to an abnormal surge in diesel demand across Maharashtra. During this period, PSU
Oil Companies recorded diesel sales growth of 43.37 % compared to the corresponding period
of the previous year. A total of 284 TKL of diesel was supplied across Maharashtra between 22
May and 28 May 2026.Overall, during the period from 1 May to 31 May 2026, PSU Oil Companies recorded substantial
growth in fuel sales compared to the corresponding period of the previous year. Petrol demand
increased by 8.92 % and diesel demand by 20.1 %. A total of 569 TKL of petrol and 1,157 TKL
of diesel were supplied across Maharashtra during the month.
PETROL AND DIESEL GROWTH – MAHARASHTRA (MAY 2026)
DATE PSU:(IOC,BPC,HPC) GROWTH PSU:(IOC,BPC,HPC) GROWTH
IN PETROL (%) IN DIESEL (%)
1 TO 21 MAY 26 18.54 22.3
22-28 MAY 26 13.23% 43.37%
1-30 MAY 26 8.92% 20.1 %
Despite the surge in demand, PSU Oil Marketing Companies have successfully maintained
uninterrupted fuel supplies across Maharashtra. Demand for petrol and diesel has been fully met
by the three PSU Oil Companies. All retail outlets of PSU OMCs are functioning efficiently and
without disruption barring issues at sporadic ROs in hinterland areas where abnormal demand
supply mismatches have been observed observed.
The State Government has taken several proactive measures to prevent hoarding and black
marketing of petrol and diesel across Maharashtra. All District Collectors have been instructed to
constitute vigilance and mobile teams at the district level and conduct inspections and raids
under the provisions of the Essential Commodities Act, 1955. Daily enforcement drives are being
carried out by State Government teams, resulting in the seizure of unauthorised stocks of
petroleum products and the registration of FIRs wherever necessary. As part of the enforcement
action, a total of 495 raids have been conducted, resulting in 17 FIRs, 18 arrests, and the
seizure of 77,715 litres of diesel and 1,134 litres of petrol. In addition, regular review meetings
are being held with Oil Marketing Companies (BPCL, HPCL and IOCL) to closely monitor the
supply position across all districts and ensure the uninterrupted availability of petroleum
products throughout the State.
In view of the above, citizens across Maharashtra are requested not to resort to panic buying or
hoarding of petroleum products. The Government of India, Government of Maharashtra and PSU
Oil Marketing Companies are ensuring smooth and uninterrupted supplies of petroleum products
across the State.
* * *
PIB Mumbai | Edgar Coelho/Darshana Rane
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