Amidst the tension in the Middle East, the Modi government has taken a big decision regarding petrol and diesel. The government has tightened rules for bulk procurement of industrial-grade petrol and diesel from petrol pumps in the country. As per the government order, industrial, commercial and institutional users have been barred from purchasing petrol and diesel from petrol pumps and have been directed to meet their needs from wholesale points of sale.
**Restrictions will remain in effect for 90 days**
These restrictions imposed by the government on bulk purchase of petrol and diesel from retail pumps will remain in force for 90 days, although this period can be extended by a new government order. According to a PTI report, the move comes after an unusual surge in demand for diesel in some areas as bulk users started buying the fuel from petrol pumps due to price differentials.
This difference in prices arose because state-owned oil companies had kept retail prices under control in late February to protect ordinary consumers from price increases due to the Middle East crisis. While bulk users – such as telecom towers, power generation and industries that use diesel for other needs – are charged market rates, retail pump prices remain well below the actual cost.
**Government gave reason**
On June 11, the Ministry of Petroleum and Natural Gas issued the ‘Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026’. The order directs petrol and diesel retailers and oil marketing companies (OMCs) to stop bulk purchasing at retail outlets for a period of 90 days. The government said the move was necessary due to the current geopolitical situation affecting parts of the world, which has adversely impacted the global oil supply chain, shipping logistics and availability of petroleum products. The government said bulk purchases by retail stations could impact supplies earmarked for common consumers, leading to local shortages and disruption of essential services for the common man.
**200-litre daily limit**
The order noted a huge increase in fuel sales at retail outlets in some parts of the country amid tensions in the Middle East. One of the main reasons for this is that industrial, commercial and institutional customers are purchasing fuel from retail outlets to take advantage of the difference between retail and wholesale prices. As a result, these customers are no longer allowed to purchase fuel from retail stations and will have to source their supply from their specific customer pumps. According to the notification, diesel can be sold at retail outlets only in fuel tanks of vehicles or in containers approved by the Petroleum and Explosives Safety Organization (PESO). Also, a daily purchase limit of up to 200 liters has been fixed for each customer or vehicle.
**Stopping hoarding of petrol and diesel**
The Modi government had issued this order to stop hoarding of petrol and diesel across the country. The government clarified that the purpose of this step is to ensure equal availability of petrol and diesel, prevent hoarding and misuse of supplies and maintain uninterrupted supply across the country. It has also been said in the notification that violation of these rules can lead to punishment under the ‘Essential Commodities Act’.
