Centre has barred industrial, commercial and institutional users from purchasing petrol and diesel from retail fuel outlets, rather switch to bulk sellers.On Wednesday, the Ministry of Petroleum and Natural Gas issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, directing oil marketing companies and fuel retailers to restrict bulk purchases from retail outlets for periods extending up to 90 days.The move comes as the government responds to abnormal demand growth, especially in diesel, seen in certain areas after bulk consumers began shifting purchases to petrol pumps due to price differences. In Delhi, diesel at retail outlets costs Rs 95.20 per litre, while bulk sale pricing stands at Rs 134.50.
Why is diesel costlier in bulk purchasing?
The price gap arose after state-owned oil companies adjusted retail fuel rates to shield ordinary consumers from rising costs linked to the Middle East crisis in late February.While bulk consumers such as telecom towers and industries using diesel for power generation and other feedstock needs continue to pay market-linked rates, retail pump prices remain significantly lower.Citing global conditions, the government said the move was necessary because of the “current prevailing geopolitical situation affecting certain regions of the world”, which has disrupted international petroleum supply chains, shipping logistics and the availability of petroleum products.The notification further stated, “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,”.
Here’s what the notification says
The order said, “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,”.Under the new framework, institutional, industrial and commercial users may be barred from buying fuel at retail outlets and will instead be required to procure supplies through their own consumer-operated pumps.At the same time, retail sales of diesel have also been tightened, with purchases restricted to vehicle fuel tanks or containers approved by the Petroleum and Explosives Safety Organisation (PESO). The order caps such purchases at 200 litres per customer or vehicle per day and specifies that diesel “cannot be resold”.The government said bulk procurement from retail stations risks diverting supplies meant for ordinary consumers and could “create the potential for localised shortages and disruption of essential services to the common man”.Public sector oil marketing companies, along with authorised fuel retailers, have been empowered to enforce the restrictions, while state governments and Union territories have been directed to act against hoarding, black marketing, unauthorised procurement and diversion of fuel.The order will remain in force for up to 90 days initially, with the provision for extension through fresh government notification if required.Reiterating its objective, the government said the measures are intended to ensure “equitable availability” of petrol and diesel, prevent diversion and hoarding, and maintain uninterrupted fuel 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 will be punishable under the provisions of the Essential Commodities Act.State and Union territory administrations have also been tasked with ensuring full implementation of the order, including action against hoarding, black marketing, unauthorised procurement, diversion and other irregularities.