**Executive Summary**
The Government of Maharashtra and Public Sector Oil Marketing Companies (OMCs) have assured the public of uninterrupted supplies of petrol, diesel, and LPG despite a sharp surge in demand during May 2026. This surge is attributed to seasonal agricultural activity, geopolitical tensions, and price differentials between private and public retailers. To maintain stability, the government has implemented strict monitoring, specific LPG booking intervals, and fast-tracked natural gas infrastructure expansion.
**Key Points / Main Content**
**Fuel Supply and Demand Trends**
* **Demand Growth:** Petrol demand increased by 18.54% and diesel by 22.3% between May 1 and May 21, 2026, compared to the previous year.
* **Price Differentials:** A price gap of ₹5/litre for petrol and ₹3/litre for diesel has caused customers to migrate from private retailers (Nayara, Shell) to PSU outlets.
* **Industrial Shift:** Institutional consumers are moving to retail outlets due to a price differential of approximately ₹30 per litre.
* **Stock Availability:** PSU OMCs (BPCL, IOCL, and HPCL) have supplied 402 Thousand Kilo Litres (TKL) of petrol and 789 TKL of diesel across the state.
**LPG and Kerosene Distribution**
* **Stock Levels:** Maharashtra maintains approximately 28,884 MT of LPG stock with regular replenishment.
* **Booking Restrictions:** To ensure equitable distribution, a 25-day booking interval is mandated for urban customers and a 45-day interval for rural customers.
* **Security Measures:** Over 95% of LPG refills are delivered via Delivery Authentication Code (DAC) verification.
* **Priority Sectors:** 100% of commercial LPG supply is maintained for priority institutions like hospitals and schools.
* **PDS Kerosene:** 572 KL of kerosene has been distributed across various districts, including Gadchiroli, Nashik, and Thane.
**Infrastructure and Infrastructure Expansion**
* **PNG Expansion:** Maharashtra leads the country with 44 lakh Piped Natural Gas (PNG) connections; 1,03,094 new connections were energised since April 1, 2026.
* **Regulatory Support:** Deemed permission was granted on March 27, 2026, to expedite pending applications for City Gas Distribution (CGD) pipeline laying.
* **Monitoring:** A PNG Task Force conducts weekly review meetings to monitor on-ground implementation.
**Enforcement and Vigilance**
* **Anti-Hoarding Measures:** District Collectors have established vigilance and mobile teams to conduct daily raids and inspections.
* **Legal Action:** Strict enforcement under the Essential Commodities Act, 1955, is being used to seize unauthorized fuel and register FIRs against black marketing.
**Impact Analysis**
**Consumers (Urban and Rural)**
**Impact**
Customers face restricted booking intervals for LPG and are required to use digital platforms and DAC verification for deliveries. They are also prone to "panic buying" due to fears of price hikes.
**Action Required**
Avoid hoarding or panic buying; utilize digital platforms for bookings; ensure DAC/OTP is ready for fuel delivery.
**Public Sector OMCs (BPCL, IOCL, HPCL)**
**Impact**
These companies are experiencing significantly higher offtake and must manage sporadic "dry-outs" in hinterland areas due to abnormal demand-supply mismatches.
**Action Required**
Continue regular monitoring of stocks at retail outlets; participate in weekly Task Force reviews to expedite infrastructure.
**Private Fuel Retailers (Nayara, Shell, Jio-BP)**
**Impact**
Nayara and Shell have seen a sharp decline in sales due to higher prices compared to PSU outlets, while Jio-BP is maintaining historical sales quantities.
**Action Required**
No specific action mentioned in the document; noted as the source of customer diversion to PSUs.
**District Administration and Collectors**
**Impact**
Increased responsibility to prevent illegal trade and ensure the Essential Commodities Act is upheld.
**Action Required**
Constitute vigilance teams; conduct daily raids; register FIRs against individuals involved in hoarding or illegal use of domestic gas.
Key Entities Referenced
Essential Commodities Act, 1955: The legal framework under which the state government is taking action against the hoarding and black marketing of petroleum products.
PSU Oil Marketing Companies (BPCL, IOCL, and HPCL): The primary public sector entities responsible for ensuring uninterrupted supply and distribution of petrol, diesel, and LPG.
Maharashtra: The central state of applicability where the fuel demand surge, supply monitoring, and infrastructure expansion are taking place.
City Gas Distribution (CGD) network: An initiative undergoing fast-track expansion to increase Piped Natural Gas (PNG) connections and infrastructure across the state.
Ministry of Petroleum & Natural Gas: The primary central ministry overseeing the fuel supply operations and coordination during the demand surge.
Ministry of Petroleum & Natural Gas
Public Sector Oil Marketing Companies ensure
uninterrupted fuel supplies amid demand surge
in Maharashtra
OMCs functioning efficiently and without disruption amid
sharp rise in fuel demand
State Government takes proactive measures to prevent black
marketing and hoarding of petroleum products
Posted On: 27 MAY 2026 4:40PM by PIB Mumbai
Mumbai, 27 May 2026
Amid ongoing geopolitical tensions in the Middle East impacting global supply
chains, the Government of Maharashtra and PSU Oil Marketing Companies (BPCL,
IOCL, and HPCL), through the State Level Coordinator (Oil Industry), Maharashtra,
Shri Mihir Ganesh Joshi, have assured consumers that adequate petrol, diesel and
LPG stocks are available across the State of Maharashtra. Supply operations are
being closely monitored and maintained without disruption.
Supply Position of Various Petroleum Products in Maharashtra
Petrol & Diesel
The PSU Oil Marketing Companies have assured that there are adequate stocks of
petrol and diesel available at all petrol pumps as well as storage locations of Oil
Companies across Maharashtra. Stocks at petrol pumps are being regularly
monitored by the State Government as well as Oil Companies and replenished to
ensure uninterrupted availability.
All the three PSU Oil Marketing Companies have recently observed a sharp surge in
demand for diesel and petrol at retail outlets across all districts in Maharashtra.
However, the increased demand has been fully met by the PSU Oil Companies. All
retail outlets of PSU OMCs are functioning efficiently and without disruption, barring
issues at sporadic retail outlets in hinterland areas where abnormal demand-supply
mismatch has led to partial dry-outs.
Retail outlets of Jio-BP are by and large functioning normally and selling historical
quantities. However, a sharp decline in sales has been observed at Nayara and Shell
retail outlets due to price differentials with PSU retail outlets, resulting in diversion
of sales to nearby PSU OMC outlets.During the first three weeks of May 2026 (1 May 2026 to 21 May 2026), a
significant growth in fuel demand compared to the corresponding period last year
has been observed, with petrol demand increasing by 18.54% and diesel demand by
22.3%. A total of 402 Thousand Kilo Litres (TKL) of petrol and 789 Thousand Kilo
Litres (TKL) of diesel have been supplied across Maharashtra by the three PSU Oil
Marketing Companies.
DATE PSU:(IOC,BPC,HPC) PSU:(IOC,BPC,HPC)
GROWTH IN PETROL (%) GROWTH IN DIESEL (%)
1 TO 21 MAY 26 18.54 22.3
22 MAY 26 16% 45%
23 MAY 26 23% 52%
25 MAY 26 18% 50%
26 MAY 26 16% 35
The PSU Oil Marketing Companies have witnessed significantly higher offtake of
petroleum products driven by seasonal agricultural activity across multiple districts.
Additional demand pressure has also emerged due to migration of private company
retail customers to PSU retail outlets owing to lower prices, with a price differential
of approximately ₹5 per litre in petrol and ₹3 per litre in diesel. A visible shift of
institutional and industrial consumers to retail fuel outlets due to an approximate
price differential of ₹30 per litre has also been observed. Also, panic buying by
customers fearing a further hike in the price of petroleum products in the coming
days is also leading to hoarding and black marketing, which cannot be ruled out.
This has led to all the three PSU OMCs witnessing a sharp surge in the demand for
diesel and petrol at their petrol pumps across the State of Maharashtra. This high
demand for petrol and diesel has been fully met by the three PSU Oil Companies.
LPG
Maharashtra currently has approximately 28,884 MT of LPG stock available across
all the three PSU Oil Marketing Companies, while distributor stocks are being
regularly replenished to ensure smooth supply.
Domestic LPG
Adequate domestic LPG cylinder stocks are available and deliveries are continuing
as per customer bookings. To ensure equitable distribution, booking interval
restrictions remain in place, with a 25-day interval for urban customers and 45 days
for rural customers.
Oil Companies have assured that LPG refills will continue to be delivered directly to
customers’ residences.Delivery Authentication Code (DAC) verification remains
mandatory at the time of delivery to ensure secure and verified supply. More than
95% of refills are currently being delivered through DAC/OTP authentication.Consumers have also been advised to use digital platforms for refill bookings and
avoid visiting LPG showrooms unnecessarily.
Non-Domestic/Commercial LPG
At present, nearly 60% of commercial LPG supply, as compared to the pre-war
situation, is being met while ensuring 100% supply to priority sectors such as
hospitals, educational institutions, crematoriums and social care institutions. In
addition, 5 kg Free Trade LPG (FTL) refills are being distributed for migrant
labourers as per Government directives, with approximately 20,586 cylinders being
delivered daily on average during May 2026.
Piped Natural Gas (PNG)
Considering the present supply emergency and the urgent need to expand piped
natural gas infrastructure, the Government of Maharashtra issued deemed
permission on 27 March 2026 for pending applications related to CGD pipeline laying
by Municipal Corporations, PWD, Irrigation Department and other concerned
authorities.Maharashtra currently has approximately 44 lakh PNG connections, the
highest in the country.
To expedite PNG network expansion across Maharashtra, the Government of
Maharashtra has initiated fast-track expansion of the City Gas Distribution (CGD)
network across the State. From 1 April 2026 onwards, a total of 1,03,094 new PNG
gas connections have been energised in Maharashtra, which is among the highest in
the country.PNG Task Force review meetings have been held every week since May
2026 by the State Level Coordinator (Oil Industry), Maharashtra, with participation
from LPG OMCs and CGD companies to review on-ground implementation and
expedite network expansion.
Distribution of Kerosene
Distribution of Public Distribution System (PDS) kerosene allocated by the
Government of India has commenced in Maharashtra. A total of 572 KL of kerosene
has been distributed in the districts of Gadchiroli, Gondia, Chandrapur, Nashik,
Wardha, Akola, Buldhana, Nagpur, Palghar, Thane, Dharashiv, Solapur, Latur, Sangli,
Kolhapur, Ratnagiri, Chhatrapati Sambhajinagar, Nanded, Beed and Raigad.
The State Government has taken several proactive measures to prevent black
marketing and hoarding of petrol, diesel and domestic LPG cylinders. All District
Collectors have been instructed to constitute vigilance and mobile teams at the
district level to conduct inspections and raids. Strict action is being taken under the
Essential Commodities Act, 1955 against individuals involved in illegal use of
domestic gas, hoarding and black marketing.
Daily raids are being conducted by State Government teams and unauthorised
petrol, diesel and LPG cylinders are being seized. FIRs are also being registered
wherever required. Regular review meetings are also being conducted with Oil
Marketing Companies (BPCL, HPCL and IOCL), gas distributors and CGD companies
to ensure smooth and uninterrupted supply of petroleum products across
Maharashtra.In view of the above, citizens across Maharashtra have been requested not to resort
to panic buying or hoarding of petroleum products. The Government of India,
Government of Maharashtra and PSU Oil Companies are ensuring proper and
smooth supply of petroleum products across the State.
PIB Mumbai | Jaydevi Pujari Swami/ Edgar Coelho/ Priti Malandkar
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