CHENNAI: Petroleum dealers and industrial users in the state have sought urgent clarification from the centre over new restrictions on petrol and diesel sales, warning that ambiguities in the rules could disrupt agriculture, emergency power supply systems and small-scale industrial operations.
The concerns follow a June 11 notification from the Ministry of Petroleum and Natural Gas directing oil marketing companies and retail fuel outlets to ensure that institutional, industrial and commercial consumers do not purchase fuel from retail pumps. Such users have been asked to source supplies through dedicated consumer outlets.
The order also caps diesel dispensing at 200 litres per day per customer or vehicle at retail outlets and mandates that fuel be dispensed only into vehicle tanks or PESO-approved containers. It further prohibits resale and will remain in force for 90 days.
While the Tamil Nadu Petroleum Dealers Association (TNPDA), representing around 7,000 outlets across Tamil Nadu and Puducherry, has expressed broad support for tighter regulation of fuel distribution, it has flagged operational concerns over implementation.
TNPDA president K P Murali said the restriction could unintentionally affect farmers and essential users. “Farmers often buy diesel in plastic cans for tractors and irrigation pumps. The rule needs clarity so that agricultural operations are not affected,” he said.
The association has also sought clarity on diesel procurement for generator used in hospitals, schools, banks and commercial establishments, many of which depend on containers to transport fuel for backup power systems.
Industry stakeholders said the restrictions could particularly affect MSMEs that rely on diesel for both captive power generation and logistics.