The city was hit by diesel shortage Thursday after local fuel stations as well as those in neighbouring Kanchipuram and Tiruvallur districts shut shop due to lack of supplies.

Truck owners complained they were not able to transport essential food items to the city due to fuel shortage.

Transporters associations and foodstuff producers complained of daily revenue losses over Rs.250 million all over the state.

State Chief Secretary L.K. Tripathy said late Thursday evening that diesel supplies were adequate despite increased demand.

'Our talks with fuel companies revealed that intake during the last few days has increased by over 35 percent following demands from the IT sector, which run generators to combat the electricity shortage. We have been assured of enough diesel supplies and the situation is bound to improve,' Tripathy said.

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