Winning Bizness Desk
Mumbai. The Centre has capped diesel purchases at 200 litres per customer per day and barred industrial and commercial users from buying fuel at retail petrol pumps, in a move aimed at protecting supplies for ordinary consumers. The restrictions, brought in through a new government order on June 11, will remain in force for an initial period of 90 days and may be extended if required. The government says the decision was taken after unusual spikes in fuel sales at retail outlets in several parts of the country.
Why government stepped in to regulate
The Petroleum Ministry has issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026. Under the new framework, factories, commercial establishments, transport fleets and other large consumers can no longer buy petrol or diesel from regular fuel stations. Instead, they must source fuel through designated bulk supply channels or their own consumer pumps. The move seeks to prevent bulk buyers from taking advantage of lower retail prices and putting pressure on supplies meant for the public.
Key rules every consumer should know
For ordinary vehicle owners, fuel availability is expected to remain unchanged. However, diesel sales at retail outlets will now be regulated through strict conditions:
- A customer or vehicle can buy a maximum of 200 litres of diesel in a day.
- Diesel can only be filled into vehicle fuel tanks or PESO-approved containers.
- Diesel purchased from retail pumps cannot be resold.
- Commercial and industrial consumers must buy fuel through bulk channels.
Officials say these measures are designed to stop hoarding, diversion and black marketing while ensuring smooth supplies across the country.
Retail-bulk price gap triggers concern
At the heart of the issue is a sharp difference between retail and bulk diesel prices. In Delhi, diesel is available at about Rs 95.20 per litre at retail pumps, while bulk buyers have been paying around Rs 134.50 per litre. The gap of nearly Rs 40 per litre encouraged industries, telecom tower operators, transport fleets and other large users to shift their purchases to retail pumps. This led to a sudden surge in demand at several locations and raised concerns about possible shortages for regular consumers.
West Asia crisis behind price distortion
The situation traces its roots to the geopolitical crisis that erupted in West Asia earlier this year. Disruptions in global supply chains and shipping routes pushed up fuel costs. While oil marketing companies kept retail prices relatively stable to shield common consumers from inflation, bulk buyers continued to pay market-linked rates. As a result, the difference between retail and bulk prices widened significantly.
Major bulk consumers include:
- Large truck and bus operators
- Telecom infrastructure companies
- Manufacturing industries
- Construction firms
- Power generation units using diesel generators
These sectors consume fuel in large volumes and are now expected to return to bulk procurement channels.
Strict enforcement and government assurance
The Centre has directed public sector oil marketing companies, including Indian Oil, BPCL and HPCL, along with other authorised retailers, to enforce the order strictly. Violations may invite action under the Essential Commodities Act. State governments and Union Territory administrations have also been asked to curb hoarding, illegal purchases and diversion of fuel supplies.
The government has simultaneously assured citizens that there is no shortage of petrol, diesel or LPG in the country. Officials have urged consumers not to indulge in panic buying, maintaining that the restrictions are targeted at bulk users and are intended to keep fuel available for households, farmers and ordinary vehicle owners without disruption. The order will remain effective for 90 days unless withdrawn or extended through a fresh notification.
