New Delhi, 12 June (H.S.):

Amid rising geopolitical tensions in West Asia and concerns over fuel supply stability, the Central Government has introduced temporary restrictions on the purchase of petrol and diesel from retail fuel stations by industrial, commercial and institutional consumers. Under the new arrangement, such consumers will now be required to procure fuel through authorised wholesale outlets or designated consumer pumps.

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 empowers authorities to prohibit bulk purchases of fuel from retail petrol pumps for a period of up to 90 days.

According to the ministry, the measure has been implemented to ensure the equitable availability of petrol and diesel across the country, prevent potential hoarding, and maintain uninterrupted fuel supplies for the general public.

The ministry stated that unusual growth in fuel demand, particularly for diesel, has been observed in certain regions in recent weeks. Due to the significant price difference between wholesale and retail channels, several bulk consumers had reportedly begun purchasing fuel from retail outlets instead of authorised wholesale facilities, placing additional pressure on the retail distribution network.

Under the new regulations, industrial units, commercial establishments and institutional consumers will no longer be permitted to purchase fuel directly from retail petrol pumps. They must instead obtain their requirements through authorised wholesale supply channels or their own approved consumer fuel stations.

A major factor behind the decision is the substantial gap between retail and wholesale fuel prices. In New Delhi, for example, diesel is currently priced at ₹95.20 per litre at retail outlets, while the wholesale rate stands at ₹134.50 per litre. This pricing disparity encouraged many bulk consumers to source fuel from retail pumps despite having large-scale requirements.

As a result, sales at private-sector wholesale fuel outlets were affected, while a growing share of demand shifted toward the retail networks operated by public-sector oil marketing companies. The government believes that continued large-scale purchases from retail outlets could eventually disrupt local fuel availability and impact transportation services, essential supply chains and ordinary consumers.

To prevent such a scenario, the temporary restriction has been imposed as a precautionary measure. The order will remain in force for an initial period of 90 days, although the government may extend it after reviewing market conditions and the demand-supply situation.

The move comes at a time when fuel consumption in India continues to rise. In May, petrol sales by public-sector oil marketing companies — including Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited — increased by 4.8 per cent, while diesel sales rose by 6.4 per cent. The figures underscore the sustained growth in fuel demand across the country and the importance of maintaining a stable supply network.

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Hindusthan Samachar / Jun Sarkar