Govt. Caps Diesel Sales, Restricts Bulk Fuel Purchases

The government has imposed limits on diesel sales and restricted bulk buyers from purchasing fuel at retail outlets in an effort to prevent localised shortages amid disruptions in global supply. Under the order, diesel sales at petrol pumps have been capped at 200 litres per vehicle or customer per day. Fuel can only be dispensed into vehicle tanks or containers approved by the Petroleum and Explosives Safety Organisation, news agency PTI has reported.

Industrial, commercial and institutional users have also been barred from buying petrol and diesel at retail stations and will instead be required to source supplies through their own authorised consumer pumps.

Also read: Govt. Restricts Bulk Fuel Buying From Petrol Pumps

The restrictions, which will remain in force for up to 90 days, follow a surge in demand in certain regions, particularly for diesel. This increase has been linked to bulk users shifting purchases to retail outlets due to a significant price gap. In Delhi, diesel is priced at ₹95.20 per litre at petrol pumps, compared with ₹134.50 per litre for bulk supplies.

The disparity emerged after state-run oil companies adjusted retail prices to shield individual consumers from higher costs following the West Asia crisis earlier this year. Bulk consumers, including telecom operators and industries using diesel for power generation and other applications, continue to pay market-linked rates.

Commercial users such as transport operators and state-run bus services had also turned to retail outlets, contributing to the rise in demand in some areas.

The pricing gap has additionally influenced sales patterns, with volumes shifting towards public sector fuel stations from private retailers that maintained higher prices.

In May, state-owned oil companies including Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited reported a 4.8 per cent increase in petrol sales and a 6.4 per cent rise in diesel volumes.

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 11 June, directing fuel retailers to curb bulk purchases at petrol pumps.

The government said the move was necessitated by the "current prevailing geopolitical situation affecting certain regions of the world" that has disrupted petroleum supply chains, shipping logistics and product availability.

"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 the report.

The order reiterates that such consumers may be prevented from purchasing fuel at retail outlets and must rely on their own infrastructure, while diesel sold under these provisions cannot be resold.