VIJAYAWADA: The Union Ministry of Petroleum & Natural Gas has advised the Andhra Pradesh government to withdraw recent communications directing Oil Marketing Companies (OMCs) to supply diesel in bulk at retail price for Amaravati capital city works.
In a letter dated April 25, 2026, Petroleum Secretary Neeraj Mittal wrote to Chief Secretary G Sai Prasad, citing the Petroleum Rules, 2002 and guidelines of the Petroleum and Explosives Safety Organisation (PESO).
He clarified that retail outlets are permitted to dispense fuel only into vehicle tanks or approved containers up to 200 litres, and are not licensed for bulk supply operations.
The Ministry emphasised that OMCs already have Direct Sales mechanisms designed to meet the needs of bulk consumers, such as infrastructure and construction projects. It also pointed to the Door Delivery of Diesel (DDD) scheme, which provides a compliant mechanism for supplying fuel to stationary equipment through PESO-approved bowsers.
Earlier, following the request from the CRDA, the State Civil Supplies Commissioner had written to OMCs seeking facilitation of 27,566 KL of diesel between April and July 2026 for Amaravati works.
The monthly requirement was detailed as 4,239 KL for April, 8,880 KL for May, 7,528 KL for June, and 6,920 KL for July. The request was made to ensure an uninterrupted fuel supply for ongoing construction activities in the capital region.
Mittal’s letter underscored that any diversion of bulk fuel sourcing to retail outlets could raise safety, licensing, and operational concerns, apart from contravening statutory provisions. He requested the State government to ensure adherence to the regulatory framework ‘in the interest of safety and uniformity in fuel distribution.’
Efforts to contact Civil Supplies Commissioner K Kanna Babu for his response on the matter were unsuccessful.
The Centre’s communication makes it clear that while Amaravati’s construction requirements are significant, fuel supply must be routed through authorised channels.