Govt. Restricts Bulk Fuel Buying From Petrol Pumps

The Centre has barred industrial, commercial and institutional consumers from purchasing petrol and diesel at retail fuel stations, directing them instead to source supplies through bulk procurement channels, according to an official order, news agency PTI reported. The restrictions will remain in force for up to 90 days and have been introduced in response to a surge in demand, particularly for diesel, in certain regions. This increase followed a shift by bulk users towards retail outlets, driven by 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 purchases.

The pricing difference emerged after state-run oil marketing companies adjusted retail rates to shield individual consumers from rising costs linked to the West Asia crisis in late February. Bulk buyers, including telecom tower operators and industries relying on diesel for power generation and other uses, continue to pay market-linked prices.

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On Thursday, the Ministry of Petroleum and Natural Gas issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026. The directive instructs fuel retailers to limit bulk purchases at retail outlets for periods of up to 90 days at a time.

The government cited the prevailing geopolitical situation affecting parts of the world, which has disrupted global petroleum supply chains, shipping logistics and product availability, as a key reason for the move.

"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 PTI report.

Under the order, institutional, industrial and commercial users may be prohibited from procuring fuel from retail stations and will be required to rely on their own authorised consumer pumps.

Additional safeguards include limiting diesel sales at retail outlets to vehicle fuel tanks or containers approved by the Petroleum and Explosives Safety Organisation, with a cap of 200 litres per customer or vehicle per day. The order specifies that such fuel cannot be resold.

The government said allowing bulk procurement from retail outlets could divert supplies meant for individual consumers and lead to local shortages, potentially affecting essential services.

Public-sector oil marketing companies and authorised retailers have been empowered to implement the restrictions, while state governments and Union territories have been directed to act against hoarding, black marketing and unauthorised diversion of fuel.

The measures can be extended beyond the initial 90-day period through a fresh order if required. The government said the objective is to ensure equitable availability of fuel, prevent misuse and maintain uninterrupted supply across the country.

"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 said, adding that violations would be dealt with under the Essential Commodities Act.

State administrations have also been asked to take all necessary steps to enforce the order, including action against malpractices such as hoarding and unauthorised procurement.