The Centre has temporarily barred industrial, commercial and institutional consumers from purchasing petrol and diesel through regular retail fuel stations, directing them instead to procure fuel through authorised bulk supply channels.
The Ministry of Petroleum and Natural Gas issued the Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, empowering oil marketing companies and fuel retailers to restrict bulk purchases from petrol pumps for an initial period of up to 90 days.
The decision comes amid a surge in diesel sales at retail outlets after bulk consumers began shifting purchases to petrol pumps to take advantage of lower retail prices. In Delhi, diesel is currently priced at ₹95.20 per liter at retail outlets, compared to around ₹134.50 per liter under bulk supply arrangements.
According to the government, the price disparity emerged after state-run oil companies maintained lower retail fuel prices to shield ordinary consumers from rising costs triggered by geopolitical tensions and disruptions in global petroleum supply chains. Bulk consumers, however, continued to pay market-linked rates.
The government said the shift by industries and institutions towards retail outlets was causing abnormal spikes in fuel demand in some regions, raising concerns over potential supply disruptions and local shortages for regular consumers.
Under the new rules, industrial, institutional and commercial users may be prohibited from purchasing fuel at retail stations and will be required to source supplies through designated bulk procurement systems. Retail diesel sales have also been restricted to vehicle fuel tanks or Petroleum and Explosives Safety Organization (PESO)-approved containers, with a limit of 200 liters per vehicle or customer per day. The fuel purchased cannot be resold. Authorities said the measures are aimed at ensuring equitable fuel availability, preventing diversion and hoarding, and safeguarding supplies meant for the general public.
Public sector oil marketing companies and authorised fuel retailers have been empowered to enforce the restrictions, while state governments and Union Territories have been directed to take action against black marketing, hoarding, unauthorized procurement and fuel diversion.
The order will remain in effect for up to 90 days and may be extended through a fresh government notification if necessary. Violations will attract penalties under the Essential Commodities Act. The government has also retained the power to grant exemptions to specific consumers, sectors or transactions through special orders where required.
