Kerala: Petrol Capped At ₹5,000, Diesel at 200 Litres Per Customer

Fuel outlets across Kerala have begun rationing bulk purchases, restricting diesel sales to 200 litres per customer and capping petrol transactions at ₹5,000, Mathrubhumi.com reported citing sources.

The restrictions, reportedly introduced by individual pump operators in coordination with supply agents, are designed to prevent sudden stockouts during peak demand periods. The move follows a shift in supply patterns from oil marketing companies (OMCs), which are now delivering fuel based on short-term demand cycles rather than longer replenishment schedules.

According to the report, retail outlets are currently receiving stocks that cover only a few days of operation at a time. The withdrawal of credit-based supply arrangements and the introduction of upfront payment requirements have further squeezed working capital at petrol pumps.

Kerala is home to roughly 2,500 fuel stations. While urban outlets can sell up to 10,000 litres of diesel per day, smaller rural pumps handle significantly less. Regular tanker deliveries typically range between 12,000 and 24,000 litres.

Distributors have denied any nationwide fuel shortage. The Kerala State Petroleum Traders Association said the limits are a precautionary measure to maintain steady availability, not a response to scarcity. Logistical delays, however, could cause temporary disruptions, they added.

The central government said India has adequate energy buffers, including around two months of crude oil and natural gas reserves, and one and a half months of LPG stock.

But OMCs are under severe financial strain. Global crude price surges have pushed daily under-recoveries into the thousands of crores. India has kept fuel prices stable for over 70 days since the outbreak of the West Asia conflict, absorbing losses estimated at nearly ₹1,000 crore per day. The Defence Ministry said first-quarter under-recoveries for 2026 have reached close to ₹2 lakh crore as the government shields consumers from higher costs.

Prime Minister Narendra Modi has urged citizens to cut fuel use, resume working from home, and avoid overseas travel to help the country weather economic pressures from the conflict.

While officials stress this is not a shortage, the temporary caps are expected to hit bulk buyers and transport operators hardest. Regular motorists are unlikely to be affected.