Govt bans bulk petrol, diesel purchase at retail pumps for 90 days
Govt bans bulk petrol, diesel purchase at retail pumps for 90 days
M.U.H
12/06/202625
In a move aimed at ensuring uninterrupted fuel availability for ordinary consumers, the government has barred industrial, commercial and institutional users from purchasing petrol and diesel from retail fuel pumps and directed them to procure fuel through designated bulk supply channels instead, PTI reported citing an official order.
The restrictions, which can remain in force for up to 90 days, come amid concerns that a growing number of bulk consumers have shifted to buying fuel from petrol pumps to take advantage of lower retail prices, putting pressure on supplies meant for the general public.
The Ministry of Petroleum and Natural Gas on June 11 issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, empowering fuel retailers and oil marketing companies to regulate fuel sales through retail outlets.
Who will be impacted?
Under the new order, industrial units, commercial establishments and institutional consumers may be prohibited from buying petrol and diesel from petrol pumps and will instead have to source fuel through their own consumer pumps or authorised bulk supply arrangements.
Why has the government taken this step?
According to the government, the measure has been prompted by disruptions in global petroleum supply chains caused by geopolitical tensions in some parts of the world. These disruptions have affected shipping logistics and the availability of petroleum products, raising concerns over fuel security.
“It has been observed in current situation that abnormal increases in sales of Motor Spirit (petrol) and High Speed Diesel (diesel) through Retail Outlets in certain parts of the country are driven by shifting of industrial, commercial and institutional consumers to Retail Outlets owing to the price difference between retail and bulk sale prices,” the notification said, as per PTI.
The government said the move was necessitated by the “current prevailing geopolitical situation affecting certain regions of the world” that has adversely impacted international petroleum supply chains, shipping logistics and the availability of petroleum products.
Large price gap triggered shift to petrol pumps
The government has also tightened rules for diesel purchases at retail outlets. Diesel can now be sold only into vehicle fuel tanks or containers approved by the Petroleum and Explosives Safety Organisation (PESO). Purchases have been capped at 200 litres per customer or vehicle per day, and such diesel “cannot be resold”, the order said.
In Delhi, diesel is currently sold at about Rs 95.20 per litre at retail pumps, while the bulk sale price is around Rs 134.50 per litre. The price gap emerged after state-run oil marketing companies kept retail fuel prices lower to shield households and transport users from higher global energy costs following the West Asia crisis earlier this year.
How does this affect common consumers?
Officials said unrestricted bulk procurement through petrol pumps by industries and commercial establishments could divert fuel meant for retail consumers and “create the potential for localised shortages and disruption of essential services to the common man”.
By restricting bulk buyers from purchasing fuel at petrol pumps, the government aims to prevent long queues, local supply disruptions and panic buying in areas where demand has surged. The move is also intended to ensure that retail fuel prices, which remain significantly lower than bulk rates, continue to benefit ordinary consumers rather than large commercial users.
The order authorises public-sector oil marketing companies and other approved fuel retailers to enforce these restrictions. State governments and Union Territories have also been directed to act against hoarding, black marketing, unauthorised procurement, diversion of fuel and other malpractices.
Restrictions can be extended beyond 90 days
Any restrictions imposed under the framework will initially remain valid for up to 90 days but can be extended through a fresh government order if the situation warrants. The government said the measures are intended to ensure the “equitable availability” of petrol and diesel across the country, prevent hoarding and diversion, and maintain stable fuel supplies for consumers, PTI reported.
“The Government may by a special order exempt any consumer, class of consumers, area, transaction, or category of transactions from all or any of the provisions of this Order,” the notification cited by PTI said, adding that violations would attract penalties under the provisions of the Essential Commodities Act.
The Centre has also directed state governments and Union Territory administrations to take “all necessary measures to implement” the order, including “action against hoarding, black marketing, unauthorised procurement, diversion and other malpractices,” it added.
