Government bans bulk buyers from retail petrol pumps

Mangalore Today News Network

New Delhi, Jun 13, 2026: The Central government has imposed fresh restrictions on fuel purchases, this time prohibiting industrial, commercial, and institutional consumers from buying petrol and diesel from retail petrol pumps and directing them to procure supplies only from bulk sale points.

The directive, issued on June 11 by the Ministry of Petroleum and Natural Gas under the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, will be effective for up to 90 days and can be extended further, if required.

The move follows a sharp and abnormal rise in retail sales of petrol, and especially diesel, in several parts of the country as bulk consumers shifted to retail outlets to exploit the significant price gap between pump prices and bulk-supply rates.

In Delhi, for instance, diesel is sold at retail pumps for Rs 95.20 per litre, while bulk diesel is priced at Rs 134.50 per litre.

Oil-marketing companies (OMCs) had deliberately kept retail prices lower to shield ordinary vehicle owners and households from the impact of rising global crude prices, triggered by the West Asia crisis that began in late February.

Bulk users such as industries, telecom towers, and power generators, however, continued to be charged market-linked rates.

The government notification stated that the restrictions were necessitated by the “current prevailing geopolitical situation affecting certain regions of the world”.

“It has been observed... that abnormal increases in sales of motor spirit (petrol) and high-speed diesel (diesel) through retail outlets... are driven by shifting of industrial, commercial and institutional consumers to retail outlets owing to the price difference,” the order noted.

Under the new rules, institutional, industrial, and commercial buyers will have to source fuel through their own consumer pumps or authorised bulk-supply points. At retail outlets, diesel sales will now be restricted only to vehicle fuel tanks or PESO-approved containers, with a cap of 200 litres per customer or vehicle per day. The fuel purchased cannot be resold.

The government warned that continued bulk purchases from retail stations risk diverting supplies meant for ordinary citizens and could lead to localised shortages and disruption of essential services.

Public-sector OMCs and authorised retailers have been empowered to enforce the order on the ground.

State governments and Union Territory administrations have been directed to take strict action against hoarding, black-marketing, unauthorised procurement or diversion of fuel, and other malpractices.

The government has reserved the right to grant exemptions to specific consumers, classes of consumers, areas, or transactions through a special order.

Any violation of the order will be punishable under the Essential Commodities Act.