Government has cited abnormal demand patterns and global supply disruptions
The Centre has barred industrial, commercial and institutional consumers from purchasing petrol and diesel in bulk through retail fuel outlets, imposing the restriction for a period of up to 90 days amid concerns over fuel supply management and rising demand.
According to an official notification, the decision follows reports of unusually high sales of petrol and diesel at certain retail outlets, particularly diesel, as bulk consumers increasingly shifted their purchases to petrol pumps to take advantage of lower retail prices.
The government said the move was necessitated by the prevailing geopolitical situation affecting several regions of the world, which has disrupted international petroleum supply chains, shipping logistics and the availability of petroleum products.
“It has been observed in the current situation that abnormal increases in sales of Motor Spirit (petrol) and High Speed Diesel (diesel) through Retail Outlets in certain parts of the country are driven by shifting of industrial, commercial and institutional consumers to Retail Outlets owing to the price difference between retail and bulk sale prices,” the notification stated.
Under the order, industrial and commercial consumers have been directed to procure fuel from designated bulk sale points instead of retail petrol pumps.
The shift is largely attributed to the significant gap between retail and bulk fuel prices. In Delhi, diesel sold through retail fuel stations is priced at Rs 95.20 per litre, while diesel supplied through bulk channels costs around Rs 134.50 per litre.
Bulk consumers such as telecom tower operators, industries and businesses that use diesel for power generation or operational requirements are generally charged market-linked prices. In contrast, retail fuel prices have remained relatively moderated as state-owned oil marketing companies seek to cushion consumers from the impact of elevated global crude oil prices amid tensions in West Asia.
The notification also introduces restrictions on diesel purchases at retail outlets. Diesel can now only be dispensed directly into vehicle fuel tanks or Petroleum and Explosives Safety Organisation (PESO)-approved containers. In addition, purchases have been capped at 200 litres per customer or vehicle per day.
The government has, however, retained the power to grant exemptions through special orders for specific consumers, sectors, geographical areas or categories of transactions.
Officials warned that violations of the order would attract action under the provisions of the Essential Commodities Act.
The temporary measure is aimed at preventing supply distortions, ensuring adequate fuel availability for retail consumers and maintaining stability in the domestic petroleum market during a period of heightened global uncertainty.
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