A spokesman for Bharat Petroleum Corp Ltd said the company's fuel sales to pumps in Mumbai had fallen to 60-70 per cent of normal.

The situation is set to worsen as a few managerial staff are struggling to keep critical supplies flowing.

Srikumar said IOC was maintaining supplies to its top priorities, the railways, defence and airlines, but the senior managers who have been deployed for the task were struggling.

"It's turning out to be a little out of control at this point of time. They are senior management people. We have fanned out senior people. But 250-300 people cannot make up for 10,000 people who are on strike," Srikumar said.

Union leaders held talks for two hours late at night on Thursday, but could not come to an agreement.

Hindustan Petroleum Corp Ltd has not joined the strike but its operations are also affected by the truckers strike.

INDIA OIL STRIKE TALKS BREAK DOWN: IOC

Talks to end an oil workers strike that has triggered fuel shortages across India ended without an agreement early Friday, the head of the country's largest state-run refiner and marketer said.

"Some discussion took place, but we could not reach any conclusion," Chairman of India Oil Corp S. Behruia told reporters after a two hour meeting between India Oil Minister Murli Deora and representatives of the oil workers.

"But the door is open for further discussions," he said.

Petrol stations ran dry and flights were delayed at India's busiest airport as the strike by state oil company officials demanding better pay entered a third day.

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