“Domestic jet fuel has an under-recovery of around 30 rupees, but this under-recovery is variable based on international prices,” said Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas. “So this price is determined based on the international prices and it also goes up and down accordingly.”
On LPG, Sharma said consumption has been moderated through administrative measures. “The other thing is the reduction in fuel consumption. So in LPG, as I have told you before, we have tried to manage the demand in many ways, by taking the booking time or by restraining the commercial supplies. So there is a little reduction there.”
The comments come as retail fuel demand spikes and the government tweaks duties to ease the burden. The Centre vide Gazette notification dated 31.05.2026 reduced the export levy on petrol from Rs 3 per litre to Rs 1.5 per litre, on diesel from Rs 16.50 per litre to Rs 13.50 per litre and on ATF from Rs 16 per litre to Rs 9.5 per litre. The government had earlier cut excise duties on petrol and diesel by Rs 10/litre to absorb part of the price burden.
Officials said there are adequate stocks despite crowding at pumps. “Unusually high sales and heavy crowding are observed at Retail outlets in certain areas. However, it is informed that there are adequate stocks of petrol and diesel available at all Petrol Pumps in the country,” the Ministry said. During May 2026, sales of petrol and diesel increased by more than 30% in many districts.
The surge has shifted market share. There is a decline in sales of private oil marketing companies by 38% and bulk sales of PSU OMCs by 29%, with that volume moving to retail outlets of PSU OMCs.
To curb diversion, states and UTs have been requested to form special squads and take action against malpractice by bulk consumers and hoarders taking supplies meant for retail consumers, black marketing, unauthorised stocking and diversion of petroleum products under the Essential Commodities Act and Control Orders. Industry associations have also been asked to advise members to purchase diesel only from authorised procurement channels.