Rajkot: For the third straight day, long queues of trucks were seen across Kutch, from Gandhidham and Mundra to Bhachau and Samakhiyali, as fuel stations rationed diesel supplies, impacting cargo movement to India’s two largest commercial ports — Kandla and Mundra.
While transporters cite a diesel shortage as the immediate problem, the crisis is rooted in disruptions to the fuel distribution system caused by government restrictions and sharp price differences between bulk and retail diesel following tensions in the Middle East that roiled fuel markets.
The current situation stems from orders issued by the district supply officer on May 16, based on a state government notification issued in March. The order directed that transporters and industries operating “consumer pumps” should not purchase diesel from retail petrol stations. Retail pump dealers were also instructed not to store more than 1,000 litres of diesel.
Kutch has nearly 234 such fuel facilities — around 134 consumer pumps operated by transporters and industries, and about 100 pumps run by mandalis or cooperatives. Traditionally, these pumps received diesel directly from oil marketing companies (OMCs) at discounted bulk rates.
However, after the Iran-Israel conflict disrupted fuel supply chains, OMCs reportedly withdrew the discounts. Bulk diesel prices suddenly rose to between Rs 128 and Rs 145 per litre depending on the supplier, while retail diesel continued to sell at around Rs 95 per litre.
The massive price gap changed the economics overnight.
Transporters and industries stopped placing bulk purchase orders because buying diesel through consumer pumps became financially unviable. Instead, truck operators rushed to retail petrol pumps where diesel remained significantly cheaper.
The problem worsened because retail fuel stations were simultaneously instructed not to supply diesel to vehicles linked to consumer pumps. Petrol pump operators say the directive is nearly impossible to enforce.
“How is a pump attendant supposed to know which truck belongs to which consumer pump operator?” asked a fuel dealer in Gandhidham.
Since OMCs allocate diesel to retail stations based on their average sales over the previous six months, sudden spikes in demand were not matched with increased supply.
Around 10,000 container trucks operate between Kutch ports and destinations across India every day.
Gandhidham Chamber of Commerce & Industry (GCCI) president Teja Kanga, “Kutch is a manufacturing and logistics hub and gateway to northern hinterland with a large spectrum of exim goods. The diesel allocation for the district cannot be treated so casually.”
Transporters say rationing has now become common, with many trucks receiving only 50 litres of diesel against a requirement of nearly 200 litres for long-distance trips.
Mini trucks, cranes, loaders and cargo-handling vehicles operating within port premises are reportedly facing fuel shortages because mobile diesel bowser supplies have slowed down. Operators now often travel nearly 20 km outside port areas to refuel vehicles, delaying cargo movement and customs clearance.
“If I have a consumer pump in Samakhiyali and my truck is travelling from Bhuj to Khavda, how can I send it back only for refuelling? Asked Jayesh Rajde, a transporter.