Diesel Curbs Raise Concerns For Hospitals, IT Parks Dependent On Generator Power

NEW DELHI, June 14: The Centre’s decision to restrict diesel purchases from petrol pumps by industrial, commercial and institutional consumers has raised concerns among hospitals, IT parks, data centres and other critical facilities that depend on diesel generators for uninterrupted operations.

Under an order issued on June 11, such consumers can no longer buy diesel from retail fuel stations, with sales through petrol pumps capped at 200 litres per customer or vehicle per day. The restrictions, effective for up to 90 days, are aimed at curbing abnormal demand and preventing diversion of fuel meant for retail consumers.

Industry representatives warned that the move could disrupt fuel procurement for sectors where diesel generators serve as essential backup systems and are often used during peak-demand periods to manage electricity costs.

Hospitals are among the most vulnerable, as uninterrupted power is crucial for surgeries, intensive care units and other critical medical services. Data centres, telecom facilities and IT campuses also rely heavily on diesel-based backup systems to maintain continuous operations.

The government said the curbs were necessitated by a sharp increase in diesel sales at retail outlets after bulk consumers shifted purchases to petrol pumps to take advantage of lower prices. In Delhi, diesel costs Rs 95.20 per litre at retail pumps compared to Rs 134.50 per litre for bulk buyers.

Industry bodies have sought exemptions and operational clarity for essential services, arguing that critical infrastructure requires assured access to fuel supplies. While organisations with bulk fuel contracts may face limited disruption, others dependent on retail purchases may need to quickly revise procurement arrangements.

State-run oil marketing companies IOC, BPCL and HPCL reported a 6.4 per cent rise in diesel sales in May amid the surge in demand. (Agencies)