Government Caps Diesel Purchases at 200 Litres Per Day: Who Will Be Affected?
In a move aimed at safeguarding fuel availability for ordinary consumers, the Central government has temporarily barred industrial, commercial and institutional users from purchasing large quantities of petrol and diesel through retail fuel stations. These users will now be required to obtain their fuel supplies through designated bulk-sale channels.
The Ministry of Petroleum and Natural Gas issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026 on June 11. The directive empowers fuel retailers and oil marketing companies to restrict bulk procurement from petrol pumps for periods of up to 90 days, with the possibility of extensions if necessary.
According to the government, the decision was prompted by growing concerns over disruptions in global petroleum supply chains and shipping logistics caused by ongoing geopolitical tensions in certain parts of the world. Authorities noted that the situation has affected the availability of petroleum products and raised the need for precautionary measures.
The government observed an unusual rise in petrol and diesel sales at retail outlets in several regions. This surge was largely attributed to industrial and institutional consumers shifting their purchases from bulk supply channels to petrol pumps due to a significant price gap between retail and bulk fuel rates.
In Delhi, diesel sold through retail pumps is priced at Rs 95.20 per litre, while bulk buyers are paying around Rs 134.50 per litre. The difference emerged after state-owned oil marketing companies kept retail fuel prices relatively lower to shield common consumers from international price shocks following the Middle East crisis earlier this year.
Under the new order, industrial, commercial and institutional consumers may no longer be allowed to procure fuel from retail stations and will instead have to source supplies through their own authorised consumer pumps or bulk distribution networks.
The notification also places restrictions on diesel purchases at retail outlets. Diesel can now be sold only for direct filling into vehicle fuel tanks or in containers approved by the Petroleum and Explosives Safety Organisation (PESO). Additionally, purchases are capped at 200 litres per customer or vehicle per day, and the fuel cannot be resold.
Officials warned that unchecked bulk buying from petrol pumps could divert fuel meant for everyday consumers, potentially leading to local shortages and disruption of essential services.
The order authorises public-sector oil marketing companies and other approved fuel retailers to enforce these restrictions. State governments and Union Territory administrations have also been directed to take strict action against hoarding, black marketing, unauthorised procurement, fuel diversion and related malpractices.
The order authorises public-sector oil marketing companies and other approved fuel retailers to enforce these restrictions. State governments and Union Territory administrations have also been directed to take strict action against hoarding, black marketing, unauthorised procurement, fuel diversion and related malpractices.
Any restriction imposed under the framework will remain valid for an initial period of up to 90 days and may be extended through a fresh government notification if circumstances warrant.
The Centre said the measures are intended to ensure equitable fuel distribution, prevent hoarding, and maintain uninterrupted petrol and diesel supplies across the country. The government also retains the power to grant exemptions to specific consumers, regions, or categories of transactions through special orders.
The Centre said the measures are intended to ensure equitable fuel distribution, prevent hoarding, and maintain uninterrupted petrol and diesel supplies across the country. The government also retains the power to grant exemptions to specific consumers, regions, or categories of transactions through special orders.
Violations of the order will attract penalties under the provisions of the Essential Commodities Act, the notification added.
