Some private fuel retailers have started limiting diesel sales at their pumps as the West Asia conflict disrupts oil supplies and pushes up crude prices, according to a Times of India report.
The restrictions are not across the country, with Indian Oil, Bharat Petroleum and Hindustan Petroleum saying they are continuing to sell fuel without such limits at their outlets.
Several Jio-BP outlets have been told to sell up to 50 litres of diesel per customer, while some have also capped daily sales at 6,000 litres, TOI reported. At Nayara Energy outlets, the limit ranges from 70 litres to 200 litres per transaction.
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For now, the impact is limited because the three state-run oil marketing companies operate about 90% of India's more than one lakh fuel stations.
Long-distance trucks could feel the impact
The limits could affect long-haul commercial vehicles, particularly in remote areas where fuel stations are fewer and trucks typically carry larger quantities of diesel.
The latest curbs come as oil companies face a sharp rise in crude costs. India's crude basket climbed to $117.4 a barrel on September 21, compared with an average of about $66 a barrel in 2025-26, according to ICRA.
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With petrol and diesel prices at the pump not moving in line with crude, the rise has put pressure on oil marketing companies. ICRA estimates that OMCs are currently losing about Rs 9 a litre on diesel and Rs 8 a litre on petrol.
The squeeze is spreading down the fuel chain
The pressure has also been building on the supply side. Saudi Aramco has stopped crude supplies to Indian refiners until further notice following attacks on its East-West pipeline, forcing refiners to look for replacement supplies at higher costs, ET had reported.
The current situation is different from a nationwide diesel shortage. Public-sector pumps continue to sell fuel without the restrictions reported at some private outlets.
