Centre has barred industrial, commercial and institutional consumers from purchasing petrol and diesel from retail fuel stations, requiring them instead to obtain supplies through bulk procurement channels, amid concerns that large-scale buying at subsidised retail rates could disrupt fuel availability for ordinary consumers.
The restrictions, notified by the Ministry of Petroleum and Natural Gas on June 11 through the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, can remain in force for up to 90 days at a time and may be extended through a fresh government order.
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The government said the measures were aimed at ensuring the "equitable availability" of petrol and diesel, preventing hoarding and diversion, and maintaining uninterrupted supplies across the country.
In its notification, the ministry cited the "current prevailing geopolitical situation affecting certain regions of the world" that has adversely impacted international petroleum supply chains, shipping logistics and the availability of petroleum products.
The move comes after authorities observed unusually high sales of diesel and petrol through retail outlets in certain regions, driven by bulk consumers shifting purchases from dedicated supply channels to fuel stations because of a sharp price gap between retail and bulk rates.
Price gap drives shift
In Delhi, diesel currently costs Rs 95.20 per litre at retail fuel stations, compared with Rs 134.50 per litre for bulk buyers. The difference emerged after state-run oil marketing companies adjusted retail prices to shield ordinary consumers from higher fuel costs triggered by the West Asia crisis that began in late February.
While retail prices were moderated, institutional and industrial consumers continued to be charged market-linked rates for diesel used in activities such as power generation, industrial operations and telecom tower backup systems.
"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.
The government warned that such purchases could divert supplies intended for regular consumers and "create the potential for localised shortages and disruption of essential services to the common man".
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Limits and enforcement
Under the order, institutional, industrial and commercial consumers can be prevented from procuring fuel from retail outlets and may be required to source supplies through their own consumer pumps.
The notification also limits diesel sales at petrol pumps to vehicle fuel tanks or Petroleum and Explosives Safety Organisation (PESO)-approved containers. Purchases have been capped at 200 litres per customer or vehicle per day, and such diesel "cannot be resold", according to the order.
Public-sector oil marketing companies and other authorised fuel retailers have been empowered to implement the restrictions.
State governments and Union Territory administrations have been directed to take "all necessary measures to implement" the order, including "action against hoarding, black marketing, unauthorised procurement, diversion and other malpractices."
The notification further states: "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."
It added that any violation of the order would be punishable under the provisions of the Essential Commodities Act.
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