India stares at fuel shortage with spike in under-recovery at OMCs

As oil marketing companies (OMCs) stare at huge under-recoveries, India is facing fuel shortage across the country with states like Rajasthan, Madhya Pradesh, Karnataka Uttarakhand, Gujarat and Haryana being the worst hit.

The under-recoveries suffered by OMCs are around Rs 20-25 a litre for diesel and Rs 14-18 a litre for petrol, said sources. 

Government and state-run companies denied reports of any crisis or supply-side issues on the availability of fuel. 

Major reasons for the current shortage, according to sources, are the stoppage of sale by private players like Reliance Industries and Nayara Energy as well as cut in supply