The government on Friday issued fresh directions to limit bulk purchase and sale of petroleum products at retail outlets, as industrial and commercial consumers increasingly shift to retail fuel stations to take advantage of lower prices. The new directions aim to prevent hoarding and diversion of fuel supplies meant for ordinary customers.
Diesel sale limit and restrictions
No more than 200 litres of diesel can be sold per day, per customer, per vehicle from retail pumps. Resale of such diesel is prohibited. The order restricts sales at fuel stations to vehicle tanks or Petroleum and Explosives Safety Organisation (PESO)-approved containers. It also reiterates that institutional, industrial and commercial customers should use bulk channels instead of purchasing fuel from retail outlets. Bulk diesel currently costs Rs 35-40 a litre more than retail diesel.
Legal framework and government action
The directions came after the Union petroleum ministry notified the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, creating a legal framework for imposing restrictions on fuel procurement. The Maharashtra Government Resolution (GR) cited “geopolitical developments” affecting petroleum product supply. The GR noted that in some districts, industrial customers have been purchasing diesel in large quantities from retail outlets, prompting a circular on June 5 to curb the practice. Issues being tackled include hoarding, black marketing, unauthorized filling of fuel in tankers from pumps, fuel adulteration, and charging prices higher than prescribed.
Transporters seek clarity
Transporters reacted to the new order, acknowledging the step aims to ensure equitable availability but seeking clarification on restrictions. Bal Malkit Singh from the All India Motor Transport Congress said, “Long-haul commercial vehicles often have fuel tank capacities higher than 200 litres. Operational restrictions affecting genuine commercial transport vehicles may impact fleet efficiency, vehicle turnaround time and supply chain performance.” He noted some heavy vehicles may need 300 litres or more of diesel during refuelling. Singh urged the government and Oil Marketing Companies to issue suitable operational guidelines and exemptions for commercial vehicles engaged in goods transportation, essential commodities movement, export-import logistics, and other critical supply chain activities.
Surge in retail fuel sales
An unusual surge in fuel sales at retail outlets across the country was recorded in May compared with April. Diesel sales rose more than 30% in 156 districts, with six districts recording growth of over 100%. Petrol sales at PSU-run fuel stations increased more than 30% in 150 districts, while 14 districts reported growth exceeding 100%. Officials attributed the increase partly to agricultural demand and partly to bulk consumers shifting to retail outlets. Bulk diesel sales have declined by 38% at private sector outlets and 29% at state-run oil marketing companies’ outlets.
