New Delhi: The Centre has temporarily barred industrial, commercial and institutional consumers from purchasing petrol and diesel from regular retail fuel stations, directing them to procure fuel through designated bulk supply channels instead. The move comes in response to a sharp rise in fuel sales at retail outlets in several parts of the country.
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 Friday, citing concerns that large-scale buyers were increasingly shifting to retail pumps due to the widening gap between retail and bulk fuel prices.
Under the new regulations, commercial establishments, industries and institutions will no longer be allowed to source fuel from retail outlets and must instead use bulk purchase mechanisms or their own authorized fuel facilities. The restrictions will remain in force for up to 90 days, although the government may modify or extend the order through a separate directive.
The ministry noted that the surge in retail fuel sales was largely driven by bulk consumers opting for cheaper retail rates. In Delhi, diesel is currently available at around Rs 95.20 per litre at retail pumps, while bulk purchasers are paying significantly higher market-linked rates.
The price gap widened after the West Asia crisis earlier this year, when state-run oil marketing companies chose to shield ordinary consumers from rising international fuel costs by keeping retail prices relatively stable. Bulk fuel rates, however, continued to reflect market fluctuations.
As part of the order, diesel sales at retail outlets will be restricted to vehicle fuel tanks and containers approved by the Petroleum and Explosives Safety Organisation (PESO). A maximum of 200 litres of diesel can be purchased per customer or vehicle per day from retail pumps. The government has also made it clear that fuel bought under these provisions cannot be resold.
Officials said the decision was taken to prevent diversion of fuel supplies intended for the general public and to avoid potential shortages caused by large-volume purchases from retail stations.
The order authorises public sector oil marketing companies and fuel retailers to enforce the restrictions. State governments and Union Territory administrations have also been directed to take strict action against hoarding, illegal procurement, black marketing and other violations.
Any breach of the order will attract penalties under the Essential Commodities Act. However, the Centre retains the authority to exempt specific consumers, regions or transactions through special orders if deemed necessary.
