The government has implemented temporary restrictions on diesel sales through retail outlets to tackle hoarding and black marketing. Public sector oil marketing companies are incurring daily losses of approximately Rs 500 crore to shield consumers from global fuel price fluctuations. The Ministry of Petroleum and Natural Gas has introduced the ‘Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026’ for up to 90 days to ensure uninterrupted diesel availability for retail consumers.
The new regulations mandate that retail outlets can only dispense diesel into vehicle tanks or PESO-approved containers, with a maximum limit of 200 litres per day per customer or vehicle. Diesel purchased from these outlets cannot be resold. Industrial, institutional, commercial, and direct consumers are now prohibited from sourcing diesel from retail outlets and must obtain supplies through designated consumer pumps.
The government’s move aims to prevent the diversion of subsidised retail fuel supplies to bulk users. The restrictions were imposed due to a surge in diesel demand at retail outlets, with bulk consumers shifting purchases to PSU fuel stations to benefit from lower retail prices. Public sector fuel retailers are currently absorbing significant losses daily to support consumers amidst global energy price spikes.
