Govt bars bulk industrial petrol, diesel purchases through retail fuel outlets

The government on Thursday barred industrial, commercial and institutional consumers from procuring petrol and diesel through retail fuel stations, according to an official order.

In a notification, the Ministry of Petroleum and Natural Gas directed public sector OMCs and other authorised fuel marketers to ensure that institutional, industrial and commercial consumers do not purchase petrol or diesel from retail outlets and instead meet their fuel requirements through their own consumer pumps.

The ministry issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026 under the Essential Commodities Act.

The government said it has observed abnormal increases in sales of petrol and diesel through retail outlets in certain parts of the country as industrial and commercial consumers shifted to fuel stations because of the price difference between retail and bulk sale prices.

While diesel at petrol pumps costs Rs 95.20 a litre in Delhi, bulk sales are priced at Rs 134.50.

Such purchases, it said, have resulted in diversion of supplies intended for retail consumers and could "create the potential for localised shortages and disruption of essential services to the common man".

The notification said bulk procurement through retail outlets could adversely affect the availability of fuel for genuine retail consumers and encourage hoarding, diversion and other malpractices.

Under the order, retail outlet dealers will be permitted to dispense high-speed diesel only into vehicle fuel tanks or Petroleum and Explosives Safety Organisation (PESO)-approved containers.

They will also be barred from selling more than 200 litres of diesel per day to a customer or vehicle, and the fuel so purchased cannot be resold.

Oil marketing companies and retail outlet dealers have been directed to ensure compliance with the restrictions and prevent any attempt to circumvent them.

The government said any restrictions imposed under the new framework can remain in force for an initial period of up to 90 days, unless revoked earlier, and can be extended through a fresh order if required.

"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.

It also directed state governments and Union territory administrations to take "all necessary measures to implement" the order, including "action against hoarding, black marketing, unauthorised procurement, diversion and other malpractices."

Any violation of the order will attract penalties under the Essential Commodities Act and other applicable laws, the notification said.