The Centre has restricted industrial, commercial and institutional users from buying petrol and diesel at retail fuel stations for up to 90 days under a new order issued on June 11.
The move, aimed at preventing diversion and shortages, comes amid an abnormal rise in retail fuel sales driven by a wide price gap between retail and bulk diesel (₹95.20 vs ₹134.50 per litre in Delhi). Authorities said bulk users must now rely on authorised supply channels, while ordinary vehicle owners will not be affected.
Price Gap Triggers Action
The Ministry of Petroleum and Natural Gas, through the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, said retail purchases by bulk users were causing supply distortions. Officials noted that industrial and institutional consumers were shifting to petrol pumps due to cheaper retail rates, leading to “abnormal increases” in sales. Oil marketing companies have been empowered to enforce restrictions, including a 200-litre daily cap on diesel per vehicle or customer.
Supply Chain Concerns Emerge
The government said global geopolitical tensions have disrupted petroleum supply chains and logistics, affecting availability. It warned that unchecked bulk buying from retail outlets could lead to local shortages and disrupt essential services. The order also mandates action by states and Union Territories against hoarding, black marketing and diversion, while allowing PESO-approved containers for limited diesel purchases.
What Lies Ahead
The restrictions can remain in force for 90 days and may be extended through fresh orders, with exemptions allowed in specific cases. While officials insist the step ensures “equitable availability” of fuel, it raises questions about balancing market pricing with access for different user groups. Should India maintain separate retail and bulk fuel systems more strictly to avoid such price-driven distortions?
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