Centre Bars Bulk Industrial Petrol, Diesel Purchases Through Petrol Pumps

New Delhi: The government has restricted industrial, commercial and institutional users from buying petrol and diesel from petrol pumps and instead asked them to source their requirements from bulk sale points, according to an official order.

The restrictions, which will be in place for up to 90 days, follows abnormal demand growth, particularly that of diesel, in some pockets after bulk users started buying fuel from petrol pumps due to the pricing difference. While diesel at petrol pumps costs Rs 95.20 a litre in Delhi, bulk sales are priced at Rs 134.50.

The differential arose as state-owned oil companies modulated retail prices to insulate common users from the spike in cost that followed the Middle East crisis in late February. While bulk users such as telecom towers and industries using diesel for power generation and other feedstock needs are charged market price, the retail pump rates are way lower than cost.

The Ministry of Petroleum and Natural Gas on June 11 issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, directing fuel retailers and oil marketing companies to curb bulk purchases from retail outlets for periods of up to 90 days at a time.

The government said the move was necessitated by the “current prevailing geopolitical situation affecting certain regions of the world” that has adversely impacted international petroleum supply chains, shipping logistics and the availability of petroleum products.