Bhubaneswar: Odisha may face a fuel supply crisis in the coming days amid rising diesel demand, supply disruptions and the impact of the ongoing Middle East conflict, market analysts have warned.

The concern comes after more than 400 petrol pumps in neighbouring Andhra Pradesh reportedly ran dry last week, forcing motorists to queue for hours without getting fuel. The impact of the shortage had already been felt in Odisha's Malkangiri, Kalahandi and Sambalpur, where several fuel stations faced shortages of petrol and diesel.

The price of industrial diesel purchased directly from oil companies has risen sharply after the US-Iran war. Before the war, industries were procuring diesel at around Rs 89 per litre. The rate has now reportedly increased to nearly Rs 150 per litre. In contrast, diesel at retail petrol pumps continues to sell at around Rs 92 per litre.

Due to this steep difference, many industries have started purchasing diesel from public fuel stations instead of buying industrial diesel directly from oil companies. Many industrial vehicles are now refuelling at retail outlets. Petrol pump operators said it is difficult to distinguish between industrial and private vehicles.

The situation has worsened further as the supply of fuel oil, widely used in industries, has reportedly stopped reaching the state. Industries are now increasingly using diesel as an alternative fuel, putting additional pressure on retail fuel supplies.

Diesel sales at fuel stations operated by three public sector oil companies in Odisha increased by more than 22 per cent in April compared to the same month last year. Petrol sales also rose by 14.85 per cent.

Market analysts said fuel supply remained relatively stable earlier because assembly elections were recently held in four states and one Union Territory. However, with elections now over, analysts fear Odisha could witness a crisis similar to Andhra Pradesh if fuel demand rises further in other states.

General Secretary of the Utkal Petroleum Dealers Association, Sanjay Lath, urged the state government to remain alert to prevent a fuel crisis. He warned that consumers in Odisha could face the same situation seen in Andhra Pradesh if precautionary measures are not taken in time.

Chief General Manager of Indian Oil Corporation Limited, Kamal Sheel, said industries have been advised not to buy diesel from retail pumps. He added that fuel stations showing unusually high diesel sales are being monitored closely. According to him, industries have been instructed to resume direct procurement of industrial diesel from companies. However, he maintained that fuel supply in the state currently remains normal.

Situation worsens in Nabarangpur

The impact of the ongoing Middle East conflict and fuel supply disruptions has already become visible in Nabarangpur district, where both cooking gas and fuel supplies have come under strain.

Out of 50 fuel stations in the district, nearly 30 remained closed. In Nabarangpur town and block headquarters areas, six out of nine petrol pumps were shut, while only three remained operational.

Long queues of customers were seen at the few functioning outlets. Authorities imposed restrictions on fuel purchase limits, allowing motorcycles to buy fuel worth Rs 200, auto-rickshaws Rs 300 and cars and other vehicles up to Rs 1,000. The sale of fuel in bottles and containers has also been prohibited by the administration.

Nabarangpur Collector Dr Maheshwar Swain warned of strict action against black marketing and said the district administration and supply department would oversee fuel distribution to ensure smooth supply to consumers.