India faced with diesel fuel shortage

Diesel supply ran out of fuel stations in Chennai and Bangalore, the first indication that India is experiencing a shortage of the most popular fuel in the country. Diesel fuel demand is rising at 25% annually, while crude oil refiners are capable of catering to only 12-15% growth. “A crisis in the availability of diesel is a strong possibility until new refinery capacities come up,” said a Hindustan Petroleum Corporation Ltd. (HPCL) official, which operates around 9% of the country’s refining capacity. Diesel production constitutes around 35% of the total petroleum products produced by the government-owned oil refineries. (July 11/15, 2008)