Transporters warn of supply chain disruptions after diesel purchase curbs

Commercial transport vehicles won’t be allowed to refuel at retail outlets. File pic/Ashish Raje

The Ministry of Petroleum has imposed an embargo on the purchase of more than 200 litres of diesel per day for commercial transport vehicles. According to transporters, 200 litres would enable a heavy truck to cover a distance of about 600 km. So the restrictions might affect longer haul routes.

‘Clarity needed'

Bal Malkit Singh, advisor and former president, All India Motor Transport Congress
‘Long-haul commercial vehicles often have fuel tank capacities substantially higher than 200 litres. Clarification is required regarding these. Logistics and transportation depend upon timely and adequate fuel availability. Any operational restrictions affecting genuine commercial transport vehicles may impact fleet efficiency, vehicle turnaround time, and supply chain performance. While preventing the misuse of fuel, it is equally important to ensure that transport operations are not hindered. The transport fraternity looks forward to suitable clarifications that balance fuel conservation with uninterrupted logistics operations.'

‘Burden on consumers'

Manohar Totlani, trader, APMC Vashi
‘As of now, the restriction on diesel purchases has not had any visible impact on the market. However, if the situation continues for the next few days, transportation costs are likely to rise. Transporters may pass on the additional burden to consumers, which could result in an increase in the prices of vegetables, fruits, and onions within the next week.'

‘Will take its toll'

Daljit Bal, director, Bal Roadlines Pvt Ltd
‘A truck travelling from Mumbai to Delhi typically takes three to four days. Now, it could take seven to eight days. Delays will lead to shortages in the market, ultimately pushing up prices of essential commodities. The impact will be even more significant for specialised vehicles such as Volvo trucks and Over Dimensional Cargo (ODC) carriers, which consume large quantities of fuel. Delays in cargo movement from JNPT could also affect international consignments, disrupt project timelines and increase overall project costs. The consequences will be felt across the supply chain and the wider economy.'

Reason for order

Industrial, commercial and institutional users have been barred at retail petrol pumps and need to source from bulk sale points. The restrictions, in place for up to 90 days, follow abnormal demand growth, particularly for diesel after bulk users started buying fuel from petrol pumps due to price difference - Rs 95.20 a litre in Delhi as against Rs 134.50.

What order states

Institutional, industrial, and commercial consumers may be barred from retail fuel stations and be required to source supplies through their own consumer pumps. Additionally, the notification restricts retail diesel sales at outlets to vehicle fuel tanks, with purchases capped at 200 litres per customer or vehicle per day. Such diesel "cannot be resold", the order said.