New Delhi: The Central Government has prohibited industrial, commercial, and institutional consumers from purchasing petrol and diesel from retail fuel stations across the country. According to an official order issued by the Ministry of Petroleum and Natural Gas, these heavy consumers must now source their fuel requirements strictly through designated bulk supply channels or their own captive consumer pumps.
The emergency directive, officially titled the Motor Spirit and High Speed Diesel Temporary Regulation of Supply through Retail Outlets Order 2026, was enacted to curb an abnormal surge in retail fuel sales. The restrictions will initially remain in force for a period of up to 90 days. Alongside the blanket ban on commercial bulk buyers, the government has also capped retail diesel dispensing to a maximum of 200 litres per customer or vehicle per day, strictly prohibiting any subsequent resale of the fuel.
The dramatic shift in fuel purchasing patterns stems from a widening price gap between retail and bulk fuel rates. In cities like Delhi, retail diesel at petrol pumps is priced at 95.20 rupees per litre, whereas bulk commercial procurement costs 134.50 rupees per litre. This significant difference of nearly 40 rupees per litre emerged after state owned oil marketing companies actively moderated retail prices to shield ordinary citizens from rising global crude oil costs following the West Asia crisis earlier this year. Consequently, commercial entities like telecom towers, factories, and transport companies began diverting their purchases to regular petrol pumps to exploit the cheaper retail rates.
This sudden migration caused an unprecedented surge in demand at public sector outlets, with state run oil firms reporting a sharp rise in sales for May. Meanwhile, private fuel retailers faced severe volume drops, and public sector oil marketing companies have been absorbing massive losses of nearly 500 crore rupees daily to maintain retail price stability for local households and farmers.
Officials noted that unregulated bulk buying at public fuel stations threatened to trigger localized shortages, artificial panic, and long queues, directly disrupting essential services for the common man. Under the new guidelines, retail dealers can only pump diesel into vehicle tanks or containers certified by the Petroleum and Explosives Safety Organisation.
The petroleum ministry clarified that the country faces no actual shortage of fuel, and the temporary restrictions do not amount to fuel rationing. State administrations and Union territories have been explicitly instructed to enforce the order stringently and initiate penal action under the Essential Commodities Act against instances of hoarding, black marketing, or unauthorized fuel diversion.