The Centre has launched non permanent restrictions on the sale of diesel by stores to forestall black advertising and hoarding, amid what it described as a unprecedented shift in demand brought on by bulk customers benefiting from decrease retail gas costs.
In a notification issued on Thursday, the Ministry of Petroleum and Pure Gasoline introduced the “Motor Spirit and Excessive-Velocity Diesel (Momentary Regulation of Provide by Retail Retailers) Order, 2026”, which is able to stay in pressure for up to 90 days.
Beneath the brand new guidelines, stores operated by public sector oil advertising firms (OMCs) will dispense diesel solely into car tanks or Petroleum and Explosives Security Organisation (PESO)-approved containers, with a most restrict of 200 litres per customer or car per day.
The ministry clarified that the restrictions are aimed at stopping diversion and hoarding by massive customers and are usually not anticipated to have an effect on peculiar car house owners.
“The 200-litre cap is way past what any personal car would want,” the federal government stated, including that the measures are supposed to shield retail customers from intermittent provide disruptions.
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Why has the federal government stepped in?
In accordance to the ministry, industrial, institutional and industrial customers have more and more shifted diesel purchases from devoted shopper pumps to stores as a result of retail diesel is at present round ₹40 per litre cheaper than bulk diesel.
The pattern has intensified following a pointy decline in diesel sales by personal oil advertising firms, whose excessive-velocity diesel (HSD) sales dropped about 58% in Could 2026 after they raised costs.
Because of this, demand at PSU-operated retailers surged. Knowledge for Could confirmed that 327 districts recorded greater than 10% development in diesel sales in contrast with the identical interval final yr, whereas 80 districts registered development exceeding 30%.
The federal government stated blatant circumstances of enormous portions of diesel being bought in jerry cans and subsequently resold had come to its discover.
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Bulk customers barred
Beneath the order, industrial and institutional customers have been prohibited from procuring diesel from retail pumps and should as an alternative supply provides by designated shopper pumps.
Oil advertising firms and retail outlet sellers have been made accountable for making certain compliance and stopping makes an attempt to bypass the restrictions.
State governments and Union Territory administrations have additionally been directed to take motion towards black advertising and unauthorized diversion of gas.
Violations of the order will appeal to penalties and authorized motion underneath the Important Commodities Act, 1955 and different relevant legal guidelines.
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PSU oil firms absorbing losses
The federal government stated public sector OMCs — Indian Oil Company, Bharat Petroleum Company and Hindustan Petroleum Company — are at present absorbing losses of almost ₹500 crore per day on the sale of petrol, diesel and home LPG to defend customers from the impression of the continuing West Asia disaster.
It stated this assist is meant to keep affordability for households, farmers and different finish-customers and never to subsidize industrial and bulk consumption.
No scarcity of petrol or diesel
Emphasizing that the order is a short lived measure, the federal government pressured that it shouldn’t be considered as gas rationing.
“There isn’t a scarcity of petrol or diesel within the nation,” the ministry stated.
India stays the world’s fourth-largest refiner and the fifth-largest exporter of refined petroleum merchandise, it added, noting that the federal government stays dedicated to making certain uninterrupted gas provides and safeguarding shopper pursuits by proactive measures.
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