Government restricts bulk industrial fuel purchases at petrol pumps

The government has barred industrial, commercial and institutional users from buying petrol and diesel at retail pumps. The move seeks to prevent diversion, curb shortages and protect supplies for ordinary vehicle owners.

In Short

• Govt bars industries from buying petrol, diesel at retail pumps
• Move aims to stop bulk users exploiting lower retail prices
• Retail fuel prices lower than bulk, causing unusual sales rise

The government has temporarily stopped industrial, commercial and institutional users from buying petrol and diesel from retail fuel stations, asking them to source their requirements through authorised bulk supply channels instead.

The restriction, which can remain in force for up to 90 days at a time, comes after authorities noticed an unusual rise in fuel sales at petrol pumps as some bulk users shifted to retail outlets to take advantage of lower prices.

The Ministry of Petroleum and Natural Gas issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, on June 11, empowering oil marketing companies and fuel retailers to curb such purchases.

WHY HAS THE GOVERNMENT TAKEN THIS STEP?

The move follows a widening gap between retail and bulk fuel prices, especially in diesel.

For instance, diesel sold at retail pumps in Delhi costs around Rs 95.20 per litre, while bulk diesel is priced at about Rs 134.50 per litre.

This price difference encouraged some industries, institutions and commercial users to purchase fuel from petrol pumps instead of using the designated bulk supply system.

The government said the current geopolitical situation in some parts of the world has affected petroleum supply chains, shipping logistics and the availability of petroleum products.

According to the notification, there has been an "abnormal increase" in sales of petrol and diesel through retail outlets in certain parts of the country because industrial, commercial and institutional consumers were shifting to retail pumps due to the price advantage.

WILL THIS AFFECT CAR AND BIKE OWNERS?

For ordinary consumers, there is unlikely to be any immediate impact.

The order has been introduced to ensure that petrol pumps continue to have adequate supplies for individual vehicle owners and to prevent bulk users from diverting fuel meant for the general public.

The government warned that large-scale procurement from retail outlets could create local shortages and disrupt essential services.

The new rules also restrict diesel sales at petrol pumps to vehicle tanks or containers approved by the Petroleum and Explosives Safety Organisation (PESO). Purchases are capped at 200 litres per customer or vehicle per day, and such diesel cannot be resold.

HOW LONG WILL THE RESTRICTIONS LAST?

The restrictions can remain in force for an initial period of up to 90 days. The government can extend them further by issuing a fresh order.

The Centre has also directed state governments and Union Territory administrations to take necessary action against hoarding, black marketing, unauthorised procurement, diversion of fuel and other related malpractices.

However, the government has kept the option to grant exemptions through a special order for specific consumers, areas, transactions or categories of transactions.

The government said the measures are aimed at ensuring equitable availability of petrol and diesel, preventing diversion and maintaining uninterrupted fuel supply across the country.

- Ends