The central government has imposed a temporary restriction on industrial, commercial and institutional consumers purchasing petrol and diesel from retail fuel stations. Under the new order, such consumers will be required to procure fuel only through authorised bulk sale points.
According to the Ministry of Petroleum and Natural Gas, the measure has been introduced to maintain supply-demand balance amid unusual demand patterns in the market. The restriction will initially remain in force for 90 days and may be extended if required.
The ministry said abnormal growth in retail sales of petrol and diesel had been observed in certain parts of the country. An assessment found that several industrial and commercial consumers were purchasing fuel from retail outlets because prices were lower than those available in the bulk market. This had increased pressure on the retail distribution network.
To address the situation, the government has issued the “Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026”. Under the order, large consumers must meet their fuel requirements through authorised bulk sale points, while retail outlets will continue to primarily serve individual vehicle owners and smaller consumers.
The government said the measure is expected to help maintain demand and supply balance across the retail fuel network.
The ministry also noted that ongoing geopolitical tensions in several parts of the world have affected international petroleum supply chains and shipping logistics. As a result, the availability and cost of crude oil and petroleum products have been impacted. Following rising tensions in West Asia, international markets have witnessed fluctuations in petroleum prices, which have also affected the domestic fuel market.
The government and public sector oil marketing companies have maintained relatively stable prices at retail outlets for consumers. The new regulation is expected to primarily affect large industrial and institutional buyers. There is currently no change in the process for purchasing petrol and diesel for private vehicle owners, two-wheeler users and other general consumers.
