India headed towards diesel shortage

When diesel ran out of supply from fuel stations in Chennai and Bangalore recently, it was the first indication that the country is headed for a shortage of the most popular fuel in the country.

The demand for diesel is rising at 25 per cent annually, while the crude oil refiners are capable of catering to only 12-15 per cent growth.

“A crisis in the availability of diesel is a strong possibility till new refinery capacities come up,” said a Hindustan Petroleum Corporation Ltd (HPCL) official, which operates around 9 per cent of the country’s refining capacity

BusinessStandard