Central government has barred industrial, commercial and institutional users from buying petrol and diesel at retail fuel stations and directed them to use bulk supply channels instead.
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 June 11. The order restricts bulk purchases at petrol pumps across the country to protect supplies for ordinary consumers.
Under the rules, retail outlets must cap diesel sales at 200 litres per customer or vehicle per day. Sales are allowed only into vehicle fuel tanks or Petroleum and Explosives Safety Organisation-approved containers. Buyers cannot resell fuel bought from these outlets.
Industrial, commercial and institutional consumers — including factories, transport fleets, construction companies and telecom tower operators — must now source fuel from their own consumer pumps or designated bulk sale points. Public sector oil marketing companies and authorised retailers will enforce the restrictions.
The measures will stay in force for an initial period of up to 90 days. The government can extend them through a fresh order. State governments and Union Territories have been asked to act against hoarding, black marketing and diversion of supplies. Violations are punishable under the Essential Commodities Act.
The order responds to abnormal rises in sales at retail pumps in several regions. Many large users shifted purchases to retail outlets because of a wide price gap. In Delhi, retail diesel costs around Rs 95.20 per litre while bulk prices stand near Rs 134.50 per litre. This gap emerged after oil marketing companies kept retail prices lower to shield common consumers from global cost increases linked to the West Asia situation.
The official notification stated: “It has been observed in 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.”
It further noted that the government considers the regulation necessary “in the public interest to regulate the supply of Motor Spirit and High Speed Diesel through Retail Outlets for equitable availability and distribution.”
The steps aim to prevent diversion of fuel meant for individual vehicle owners, farmers and small users. They also seek to ease pressure on retail infrastructure amid global supply chain disruptions caused by geopolitical tensions.
Oil marketing companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum will monitor compliance at outlets. The government has said overall fuel supplies remain normal and adequate across India. Earlier advisories had already urged the public to avoid panic buying or storing fuel in unsafe containers.
Large consumers now have clear directions to return to proper bulk procurement routes. The temporary order gives the government flexibility to grant exemptions for specific cases through separate notifications if required.
