Chennai, June 30: A severe shortage of diesel has gripped Chennai and its nearby areas for the past two days, affecting mass transport and even the functioning of hospitals.

On Monday, only 30 per cent of the fuel stations in the city supplied diesel, with the others either putting up no-diesel boards or sending off customers at the entrance itself. Those which had stock were crowded by taxis, autos and even swanky sedans that run on diesel. The supply lasted only for a few hours.

This has also affected many hospitals, which depend on diesel generators, thanks to erratic power supply by the Tamil Nadu Electricity Board. As the crisis worsened, diesel was supplied in cans to hospitals after the staff showed ID cards, to prevent diversion of the fuel into the black market.

However, the black market has been thriving for the past few days, selling the Rs 36-per-litre diesel for as high as Rs 80 across the city.

“We are in the dark about the reasons for this shortage. Since Friday, the quantity supplied has reduced by 50 per cent. The impact was relatively less in the past two days as it was a weekend. The situation became serious on Monday when the entire transport facilities ran on full strength,” said M Kannan, president, Tamil Nadu Petroleum Dealers Association.

Even if regular supply is maintained on Monday, extra fuel will still be needed to clear the backlog and accommodate panic buying, pointed out dealers who faced the wrath of the public.

“In the case of petrol, the quantity supplied has been reduced by 50 per cent, which spread panic among the public. Hence, when they find a bunk that has fuel stock, they try to fill their tanks and even cans to tide over the ‘shortage’, which in turn only worsens the situation,” said a dealer.

There are also bulk buyers like factories and institutions that take off huge quantities of diesel. “We cannot prevent them from buying in bulk as they are our regular customers and also, there is a lot of money already tied up as credit in the business with them. So if we say no, they will hesitate to make the payments for the stock they have already bought, which will hit us even harder,” reasoned a fuel station manager.

Oil companies said that a delay in the import of fuel parcels was affecting the supply, leading to the present shortage, but the situation was expected to improve in the coming days. However, dealers point out that the proposed national strike by lorries and tankers from midnight, Monday, may hamper the movement of fuel, worsening the situation.

Meanwhile, a lorry and tipper lorry owners association has urged the CM to intervene and solve the crisis.