The Indian government has empowered itself to temporarily restrict bulk purchases of petrol and diesel from retail fuel stations during periods of supply stress. This move aims to prevent shortages, hoarding, and diversion of supplies meant for ordinary consumers, amid a growing shift by industrial and commercial consumers to retail outlets to take advantage of lower prices.
Legal Framework Created
The petroleum ministry has notified the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026. This order creates a legal framework under which restrictions can be imposed on fuel procurement through retail outlets whenever deemed necessary in the public interest.
Key Provisions
Under the order, institutional, industrial, and commercial consumers can be directed not to procure petrol or diesel from retail outlets. Instead, they must source their requirements through authorized bulk channels. Retail outlets may be barred from selling more than 200 liters of diesel to a customer or vehicle in a day. Additionally, fuel procured under this provision cannot be resold.
Implementation and Duration
The framework does not impose any immediate nationwide restrictions. It would be invoked only if required. Any order issued under it can remain in force for up to 90 days initially and may be extended later. This ensures flexibility in responding to supply crises without causing unnecessary disruption.
The notification comes as industrial and commercial consumers increasingly turn to retail fuel stations to benefit from lower prices, potentially straining supplies for ordinary consumers. The government aims to balance the needs of all consumers while maintaining fuel availability.
