The Centre has barred industrial, commercial and institutional consumers from purchasing petrol and diesel through retail fuel stations, directing them instead to source supplies from designated bulk sale points, according to an official order issued by the Ministry of Petroleum and Natural Gas.
The restrictions, which can remain in force for up to 90 days at a time, come amid an abnormal rise in diesel demand in certain regions, driven by bulk consumers shifting purchases to retail outlets due to a sharp pricing gap.
In Delhi, diesel is currently priced at Rs 95.20 per litre at petrol pumps, while bulk diesel costs Rs 134.50 per litre. The price differential emerged after state-owned oil companies moderated retail fuel rates to shield ordinary consumers from the surge in crude prices following the West Asia crisis in late February.
Bulk consumers, including telecom towers, industries using diesel for power generation, and firms relying on diesel as feedstock, continue to pay market-linked prices, unlike retail consumers.
On June 11, the ministry issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, empowering oil marketing companies and authorised fuel retailers to restrict bulk fuel purchases from retail outlets.
The government said the decision was prompted by the “current prevailing geopolitical situation affecting certain regions of the world” that has disrupted international petroleum supply chains, shipping logistics and product availability.
“It has been observed in current situation that abnormal increases in sales of Motor Spirit (petrol) and High Speed Diesel (diesel) through Retail Outlets in certain parts of the country are driven by shifting of industrial, commercial and institutional consumers to Retail Outlets owing to the price difference between retail and bulk sale prices,” the notification said.
Under the order, industrial, institutional and commercial users may no longer procure fuel from petrol pumps and would instead have to rely on their own consumer pumps or bulk supply channels.
The notification also caps diesel purchases at retail outlets at 200 litres per customer or vehicle per day and permits sales only through vehicle fuel tanks or Petroleum and Explosives Safety Organisation (PESO)-approved containers. Such diesel “cannot be resold”, the order said.
According to the government, unchecked bulk buying at retail stations could divert supplies meant for regular consumers and “create the potential for localised shortages and disruption of essential services to the common man”.
The order authorises public-sector oil marketing companies and other fuel retailers to enforce restrictions, while state governments and Union Territories have been tasked with curbing hoarding, black marketing, unauthorised procurement and fuel diversion.
Any restrictions imposed under the framework may remain in force for an initial period of up to 90 days and can be extended through a fresh government notification.
The Centre said the measures are aimed at ensuring the “equitable availability” of petrol and diesel, curbing hoarding and diversion, and maintaining uninterrupted fuel supply nationwide.
“The Government may by a special order exempt any consumer, class of consumers, area, transaction, or category of transactions from all or any of the provisions of this Order,” the notification said.
It also directed state governments and Union territory administrations to take “all necessary measures to implement” the order, including “action against hoarding, black marketing, unauthorised procurement, diversion and other malpractices.”
(With inputs from PTI)