New Fuel Rule: Bulk Buyers Barred from Retail Pumps, Diesel Sales Limited for Trucks

The central government has restricted commercial and industrial consumers from purchasing petrol and diesel at regular retail outlets, directing them instead to bulk supply points. The move comes amid supply concerns and volatility in global oil markets, according to an official order reported by Reuters.

Under the new rules, retail fuel stations will no longer serve commercial and industrial buyers, who must now source fuel through designated bulk purchase channels. Also, diesel sales at regular pumps have been capped at 200 litres per customer or vehicle per day.

Officials have directed fuel dealers to monitor transactions to prevent diversion, resale or stockpiling of diesel purchased at retail outlets.

The restrictions are aimed at easing pressure on local fuel availability and ensuring more consistent distribution across regions. Authorities said the measures are intended to prevent supply imbalances that have emerged in recent months due to shifting purchase patterns.

Industry sources indicate that several commercial operators, particularly in the transport sector, had increasingly moved their purchases from bulk supply points to retail stations. The shift was largely driven by pricing differences, with retail diesel in Delhi priced significantly lower than bulk supply rates, creating arbitrage opportunities and supply strain at some outlets.

The policy also points to financial stress faced by state-run fuel retailers. Oil marketing companies have been absorbing losses on regulated retail fuel sales, with diesel reportedly sold at a loss of around ₹36 per litre and petrol at lower margins compared to market-linked bulk pricing.

India continues to be a major exporter of refined petroleum products, but domestic pricing structures and retail subsidies have placed pressure on public sector oil marketing companies, including Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, which together operate the majority of fuel stations in the country.

The government has linked the decision to broader global energy uncertainty, including geopolitical tensions and disruptions affecting oil supply routes. It said the current environment requires tighter management of domestic fuel distribution to maintain stability.

The restrictions will remain in force for up to 90 days and may be revised or withdrawn earlier depending on supply conditions and future government orders.