New Delhi: The Centre has introduced temporary restrictions on diesel sales at retail fuel stations to prevent hoarding and black marketing, amid mounting losses being borne by public sector oil marketing companies (OMCs) to keep fuel prices in check.
The Ministry of Petroleum and Natural Gas on Friday issued the Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, which will remain in force for an initial period of up to 90 days.
According to the ministry, the move is aimed at ensuring uninterrupted diesel availability for ordinary consumers and preventing the diversion of subsidised retail fuel supplies to bulk buyers.
Key Restrictions Introduced
Under the new order, diesel will be dispensed only into vehicle fuel tanks or containers approved by the Petroleum and Explosives Safety Organisation. Purchases will be capped at 200 litres per day per customer or vehicle, and diesel bought from retail outlets cannot be resold.
The government has also barred industrial, institutional, commercial and other bulk consumers from purchasing diesel from regular retail outlets. Such consumers will now be required to procure fuel through designated consumer pumps.
PSU Fuel Retailers Bearing Heavy Losses
The decision comes amid a sharp increase in diesel demand at public sector fuel stations, driven by a significant price gap between retail and bulk diesel.
According to the government, retail diesel is currently about ₹40 per litre cheaper than bulk diesel because state-run oil companies continue to absorb a large portion of the rising costs. Public sector OMCs are reportedly incurring losses of nearly ₹500 crore every day on the sale of petrol, diesel and domestic LPG to shield consumers from fluctuations in global energy prices and disruptions in West Asia.
Surge in Diesel Sales Raises Concerns
Government data for May 2026 showed a substantial jump in diesel sales through PSU retail outlets. As many as 327 districts recorded growth of more than 10 per cent compared to the same period last year, while 80 districts witnessed growth exceeding 30 per cent.
In contrast, private oil marketing companies saw their high-speed diesel sales decline by around 58 per cent during the month due to higher pricing.
The ministry said it had received reports of individuals purchasing diesel in large quantities using jerry cans and subsequently reselling it, prompting concerns over black marketing and supply diversion.
Enforcement Measures
Oil marketing companies and retail fuel dealers have been tasked with ensuring compliance with the new regulations. State governments and Union Territory administrations have also been directed to take strict action against hoarding, black marketing and unauthorised fuel diversion.
The government said the temporary measures are intended to protect fuel availability for households, farmers, transport operators and other genuine consumers while maintaining market stability during a period of elevated global energy prices.
With inputs from IANS