Government Prohibits Industries from Purchasing Petrol and Diesel at Pumps; Requires Bulk Purchase Method
Centre has prohibited industrial, commercial, and institutional users from purchasing petrol and diesel at retail fuel outlets, directing them to switch to bulk suppliers. 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. This order mandates oil marketing companies and fuel retailers to limit bulk purchases from retail outlets for up to 90 days.
The government’s decision responds to an abnormal surge in demand, particularly for diesel, as bulk consumers have started buying fuel from petrol pumps due to price discrepancies. In Delhi, diesel is priced at Rs 95.20 per litre at retail outlets, while bulk sale prices reach Rs 134.50.
Why is diesel costlier in bulk purchasing?
The price difference emerged after state-owned oil companies adjusted retail fuel rates to protect ordinary consumers from rising costs linked to the Middle East crisis in late February. While bulk consumers, including telecom towers and industries that use diesel for power generation, continue to pay market-linked rates, retail prices remain significantly lower.
The government cited the current geopolitical situation affecting global petroleum supply chains as a reason for the new regulations. The notification noted that there has been an abnormal increase in sales of petrol and diesel through retail outlets, driven by industrial and commercial consumers shifting their purchases due to the price gap.
Here’s what the notification says
The order specifies that institutional, industrial, and commercial users will be barred from buying fuel at retail outlets and must procure supplies through their own consumer-operated pumps. Additionally, retail sales of diesel will be restricted, allowing purchases only for vehicle fuel tanks or containers approved by the Petroleum and Explosives Safety Organisation (PESO). Purchases will be capped at 200 litres per customer or vehicle per day, and diesel cannot be resold.
The government expressed concerns that bulk procurement from retail stations could divert supplies meant for ordinary consumers, potentially leading to localized shortages and disruptions in essential services. Public sector oil marketing companies and authorized fuel retailers are tasked with enforcing these restrictions, while state governments and Union territories are directed to combat hoarding and black marketing. The order will remain in effect for an initial period of 90 days, with the possibility of extension through a new government notification if necessary. Violations will be punishable under the Essential Commodities Act.
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