Govt bars industrial, commercial users from buying diesel at retail pumps to protect consumer supplies
New Delhi, June 12
The Centre has barred industrial, commercial and institutional consumers from purchasing diesel from retail fuel stations, seeking to protect supplies meant for ordinary consumers amid an abnormal surge in diesel sales at petrol pumps due to diversion from bulk channels.
In a notification issued on June 11, the Petroleum Ministry said industrial, commercial and institutional consumers have increasingly shifted to retail outlets to buy fuel because of the price difference between retail and bulk sales, leading to pressure on supplies intended for retail customers.
The ministry said it had observed that "abnormal increases in sales of Motor Spirit and High Speed 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."
According to the notification, this trend is resulting in the "diversion of supplies intended for retail consumers" and creating the possibility of "localised shortages and disruption of essential services to common man."
To address the issue, the Centre has issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, under the Essential Commodities Act.
Under the order, the government can direct public sector oil marketing companies and other authorised fuel retailers to prevent institutional, industrial and commercial customers from sourcing petrol and diesel from retail outlets. Such consumers will be required to meet their fuel requirements through their own consumer pumps.
The government has directed retail outlet dealers to dispense high-speed diesel only into vehicle tanks or Petroleum and Explosives Safety Organisation (PESO)-approved containers and limit sales to 200 litres per customer or vehicle per day.
"Retail Outlet dealers shall dispense HSD only in a vehicle tank, or PESO-approved containers, and not exceeding 200 litres in a day to a customer/vehicle and this HSD cannot be resold," the notification said.
The ministry said the measure was necessary because "such bulk procurement through Retail Outlets has the potential to adversely affect the availability of Motor Spirit and High-Speed Diesel for bona fide retail consumers and may lead to hoarding, diversion and other malpractices."
The notification linked the move to global developments, stating that the prevailing geopolitical situation affecting some regions of the world has impacted international petroleum supply chains, shipping logistics and the availability of petroleum products.
Government stated that any restrictions imposed under the order would initially remain valid for a period not exceeding 90 days unless revoked earlier or extended through a subsequent order.
The ministry said violations of the order would attract penalties under the Essential Commodities Act and other applicable laws.
— ANI
Reader Comments
Interesting policy move. When I was in Mumbai last month, I noticed several trucks filling up at regular petrol pumps instead of bulk depots. The price difference is clearly incentivizing this behavior. But limiting to 200 litres per vehicle per day feels a bit arbitrary - won't this hurt small businesses that need more for their delivery vehicles? 🤔
This is just a band-aid solution. The real issue is why diesel prices are so different for bulk and retail consumers? Is the government subsidizing one and not the other? Instead of restrictions, why not fix the price disparity? Also, this 90-day order creates uncertainty for businesses planning their logistics. 🤷♀️
As a small transport business owner, I'm caught in the middle. My trucks fill up at retail pumps because bulk depots are far away and charge more for smaller quantities. Now I have to figure out a separate pump arrangement? This is going to hit my operational costs. But I understand the need to protect ordinary consumers - we've all seen the long queues last month. Hope the government provides clear guidance.
Reading this from Bangalore where we already have enough fuel supply issues. The mention of "geopolitical situation affecting international supply chains" is clever framing, but this feels more like domestic mismanagement. Why aren't bulk prices competitive? If the government is serious about protecting consumers, they should address the root cause - price controls and subsidy distortions - rather than creating new regulations. 🇮🇳
I run a construction company and we've been filling our machinery at retail pumps because the bulk supplier takes
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