Govt restricts bulk fuel purchases at petrol pumps amid supply concerns

The Centre has imposed temporary restrictions on industrial commercial and institutional consumers purchasing petrol and diesel from retail fuel stations directing them to source their fuel requirements through designated bulk supply channels instead reported PTIThe move comes amid concerns over abnormal growth in fuel demand at retail outlets particularly for diesel following a widening price gap between retail and bulk fuel salesAccording to a notification issued by the Ministry of Petroleum and Natural Gas on June 11 the restrictions will initially remain in force for up to 90 days and may be extended if required reported PTIGovernment cites supply concerns amid global uncertaintyThe ministry said the decision was prompted by disruptions in global petroleum supply chains and shipping logistics arising from the prevailing geopolitical situation in certain parts of the worldOfficials noted that the current environment has placed pressure on fuel availability and distribution networks necessitating measures to ensure adequate supplies for ordinary consumersThe government said it had observed unusual increases in petrol and diesel sales through retail outlets in several regions driven largely by industrial and commercial consumers shifting their purchases from bulk supply channels to petrol pumps reported PTIPrice gap triggers shift to retail fuel stationsA significant difference between retail and bulk fuel prices has encouraged large consumers to purchase fuel from petrol pumpsIn Delhi diesel sold through retail outlets is currently priced at around Rs 9520 per litre while bulk diesel is reportedly available at approximately Rs 13450 per litreThe price disparity emerged after stateowned oil marketing companies moderated retail fuel prices to shield individual consumers from the impact of rising global crude oil prices and supply disruptions following geopolitical tensions in West Asia earlier this yearHowever industries telecom tower operators and other bulk users continue to pay marketlinked rates for fuel purchased through bulk supply arrangementsNew restrictions on diesel purchasesUnder the Motor Spirit and High Speed Diesel Temporary Regulation of Supply through Retail Outlets Order 2026 institutional industrial and commercial consumers may no longer be permitted to procure fuel through retail petrol pumps reported PTIInstead such consumers will be required to obtain supplies through authorised bulk distribution systems or their own consumer pump facilitiesThe order also introduces restrictions on diesel sales through retail outlets Diesel can now be dispensed only into vehicle fuel tanks or containers approved by the Petroleum and Explosives Safety Organisation PESOAdditionally diesel purchases have been capped at 200 litres per customer or vehicle per day at retail outlets The government has clarified that fuel purchased under these provisions cannot be resoldGovernment aims to prevent shortages and hoardingAccording to the notification largescale procurement of fuel through retail stations risks diverting supplies intended for regular consumers and could potentially create local shortagesThe Centre said the restrictions are intended to ensure equitable distribution of fuel prevent hoarding and curb unauthorised diversion of petroleum productsThe order empowers publicsector oil marketing companies including Indian Oil Corporation IOC Bharat Petroleum Corporation Limited BPCL and Hindustan Petroleum Corporation Limited HPCL as well as other authorised retailers to implement and enforce the new regulationsState governments directed to monitor complianceThe Centre has instructed state governments and Union Territory administrations to take all necessary measures to enforce the orderAuthorities have been asked to monitor and act against hoarding black marketing unauthorised procurement diversion of fuel supplies and other malpracticesViolations of the order will attract penalties under the provisions of the Essential Commodities ActRestrictions can be extended beyond 90 daysThe government stated that the restrictions will remain effective for an initial period of up to 90 days However the duration may be extended through a fresh notification if market conditions warrant continued regulationThe order also provides flexibility for the government to grant exemptions in specific cases It may exempt certain consumers sectors geographical areas or categories of transactions from some or all provisions of the regulationOfficials said the objective of the move is to maintain uninterrupted fuel supplies across the country protect retail consumers from shortages and ensure that petroleum products remain available through an orderly distribution system during a period of heightened global uncertaintyWith inputs from PTI