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bulk fuel restriction

Bulk fuel buyers directed away from petrol pumps

Officials attributed the trend to bulk users shifting their purchases to petrol pumps to take advantage of lower retail fuel prices.

Bulk fuel buyers directed away from petrol pumps

New Delhi: The Centre has introduced temporary restrictions on the sale of petrol and diesel through retail fuel stations, preventing industrial, commercial and institutional consumers from purchasing fuel from regular petrol pumps.

Under a new order issued by the Ministry of Petroleum and Natural Gas, such consumers will now have to procure fuel through designated bulk supply channels or their own consumer pumps.

The move comes after authorities observed a sharp increase in diesel sales at retail outlets in some parts of the country. Officials attributed the trend to bulk users shifting their purchases to petrol pumps to take advantage of lower retail fuel prices.

The government said the measure was necessary in view of disruptions affecting global petroleum supply chains and fuel availability.

“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,” the notification said.

The restrictions were notified through the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, issued on June 11. The order empowers oil marketing companies and authorised retailers to regulate bulk purchases at retail outlets and can remain in force for periods of up to 90 days at a time.

A significant price gap has emerged between retail and bulk diesel rates. In Delhi, diesel is currently priced at Rs 95.20 per litre at retail fuel stations, while bulk buyers are paying Rs 134.50 per litre.

The difference arose after state-run oil marketing companies moderated retail fuel prices to cushion ordinary consumers from the impact of rising crude oil prices following the West Asia crisis earlier this year. Bulk consumers, including industries, telecom tower operators and businesses using diesel for power generation or as a production input, continue to pay market-linked rates.

The order also places limits on diesel purchases at retail outlets, capping sales at 200 litres per customer or vehicle per day. Fuel can only be dispensed directly into vehicle tanks or containers approved by the Petroleum and Explosives Safety Organisation (PESO).

Officials said the measures are aimed at ensuring retail fuel supplies remain available for ordinary consumers and preventing large-scale diversion of demand from bulk supply channels.

BI Bureau