Fuel Purchase Rules Changed: Centre Restricts Petrol, Diesel Sales To Bulk Users

The government has imposed temporary restrictions on the sale of petrol and diesel through retail fuel stations, preventing industrial, commercial and institutional consumers from purchasing fuel from ordinary petrol pumps.

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, introducing temporary restrictions on fuel purchases by industrial, commercial and institutional consumers.

The decision comes after authorities noticed a sharp increase in fuel sales at retail outlets in some parts of the country. According to the government, many bulk consumers had started buying fuel from petrol pumps instead of designated supply channels because of lower retail prices.

Fuel Purchase Rules

Under the new rules, industrial units, commercial establishments and institutional consumers will no longer be allowed to source petrol and diesel from retail fuel stations for their regular requirements.

Instead, these consumers will have to buy fuel through authorised bulk supply channels or their own consumer pumps. The government said the move is intended to ensure fuel stations continue serving regular motorists and other retail customers.

The government said the shift in purchasing patterns was largely driven by the widening gap between retail and bulk fuel prices. As retail rates remained lower, several large consumers reportedly moved their purchases to petrol pumps.

Why Fuel Sales Restricted?

Officials said the change in buying behaviour raised concerns about the availability of fuel meant for regular consumers. The government believes continued large-scale purchases from retail pumps could put pressure on local supplies.

The government said large fuel purchases through retail outlets could divert supplies meant for regular consumers and increase the risk of local shortages.

It also cited global geopolitical tensions, saying they have affected petroleum supply chains, shipping routes and the availability of fuel products in some regions.

The notification read, “The Government is satisfied that it is necessary and expedient in the public interest to regulate the supply of Motor Spirit and High Speed Diesel through Retail Outlets for equitable availability and distribution.”

What Changes For Consumers?

The order introduces additional controls on diesel sales through retail outlets. Petrol pumps can now supply diesel only to vehicle fuel tanks or containers approved by the Petroleum and Explosives Safety Organisation (PESO).

Retail diesel purchases have also been capped at 200 litres per customer or vehicle per day. The government has clarified that diesel purchased under these provisions cannot be resold.

Oil marketing companies and authorised fuel retailers have been empowered to implement the restrictions, while state governments and Union territory administrations have been asked to monitor violations and take action where necessary.

The notification states that hoarding, black marketing, unauthorised procurement and fuel diversion will attract action under existing laws. Any violation of the order can be punished under the Essential Commodities Act.

The government can also grant exemptions to certain consumers, regions or transactions if required. It said the restrictions are intended to keep fuel supplies stable, prevent hoarding and ensure petrol and diesel remain available across the country.