- This prevents large users from exploiting the significant price gap.
The central government on Thursday banned factories and large businesses from buying diesel at petrol pumps and set a 200-litre daily limit per customer, amid fuel supply fears from the West Asia conflict.
The government issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, on June 11, according to PTI. The order will remain in force for up to 90 days and may be extended by a fresh government order.
What Triggered The Restrictions?
The ongoing conflict in West Asia has disrupted global oil supplies and shipping routes. The Strait of Hormuz, a critical passage that handles nearly one-fifth of global oil trade, has seen major disruptions since the crisis began in late February. That has pushed crude oil prices higher worldwide.
Factories, telecom towers, and other large commercial users had quietly shifted to buying diesel at petrol pumps instead of through bulk supply points. The reason was simple: a large price gap. Diesel at petrol pumps in Delhi costs Rs 95.20 a litre, while bulk supply points charge Rs 134.50 a litre, PTI reported. That difference of roughly Rs 39 was enough for big buyers to start crowding out everyday consumers at the neighbourhood pump.
What Are The New Rules?
No single customer or vehicle can now buy more than 200 litres of diesel per day from a retail outlet. Diesel bought at a pump also cannot be resold.
More importantly, industrial, commercial and institutional users, such as factories, telecom towers, and large establishments running diesel generators, can no longer buy petrol or diesel from retail fuel stations at all. They must now source their requirements through dedicated consumer pumps or authorised bulk sale points.
The government’s order directs oil marketing companies, including Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, to enforce these restrictions. State governments and Union Territories have been asked to act against hoarding, black marketing, and unauthorised diversion of fuel supplies.
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What Happens If The Rules Are Broken?
Violations will be punishable under the Essential Commodities Act. The government can also exempt specific consumers, categories of buyers, or regions from the order through a special notification.
What Does This Mean For Diesel Vehicle Owners?
If you own a diesel car, the 200-litre daily cap does not affect you in practice. Passenger cars in India typically have fuel tanks that hold between 35 and 60 litres. Two-wheelers carry far less, with most commuter motorcycles holding around 10 litres. You can continue to buy diesel at your nearest petrol pump as usual.
The restrictions are aimed at large buyers who were using retail pumps to take advantage of the price gap. The government argues this was pulling fuel away from ordinary consumers and creating the risk of local shortages and disruption of essential services.
Fuel Prices Have Already Gone Up
India had kept retail fuel prices stable even as crude oil costs climbed globally. The government held prices steady for the first 76 days after the Hormuz disruption began before starting to revise them upward, government officials said.
Since May 15, petrol prices in Delhi have risen by Rs 4.75 per litre, roughly a 5 per cent increase. Diesel prices have gone up by Rs 4.82 per litre, an increase of about 5.49 per cent, PTI data showed.
The government said the current geopolitical situation has hit petroleum supply chains and shipping logistics and “raises the need to deal with such unpredictable situations in a formal manner.”
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