New Delhi, June 12 (IANS). The central government on Friday banned the sale of bulk diesel at retail outlets. The reason for this was to provide relief to the oil companies, which are facing under recovery (difference between sales and cost) of Rs 500 crore per day due to global instability.
The Ministry of Petroleum and Natural Gas said that such temporary measures have been implemented under the ‘Motor Spirit and High-Speed Diesel Order, 2026’ which will initially be in force for 90 days.
The ministry said the move is aimed at ensuring uninterrupted supply of diesel to retail customers and to prevent subsidized retail fuel supply from diverting to bulk users.
Under the new rules, retail outlets will sell diesel only in vehicle tanks or containers approved by the Petroleum and Explosives Safety Organization (PESO). In this, a maximum limit of 200 liters per day has been fixed for each customer or vehicle.
However, diesel purchased from retail outlets cannot be resold.
Additionally, industrial, institutional, commercial and direct consumers are prohibited from purchasing diesel from retail outlets; They will have to take supplies from designated consumer pumps only.
According to the government, these restrictions have been imposed following a sudden increase in demand for diesel at retail outlets as bulk consumers started buying from PSU fuel stations to take advantage of lower retail prices.
Also, retail diesel is currently cheaper by about Rs 40 per liter compared to bulk diesel, because despite high global energy prices, government oil companies are giving relief in price.
According to the government, in order to save households, farmers and other customers amid the ongoing turmoil in West Asia, government fuel retailers are currently incurring a loss of about Rs 500 crore every day on the sale of petrol, diesel and domestic LPG.
Data for May 2026 showed that diesel sales through PSU retail outlets have increased sharply; Compared to the same period last year, 327 districts recorded an increase of more than 10 percent and 80 districts recorded an increase of more than 30 percent.
At the same time, due to higher prices, high-speed diesel (HSD) sales of private oil marketing companies saw a decline of about 58 percent in May.
The ministry said that cases of purchasing large quantities of diesel in jerry cans and later reselling it have come to the notice of the government, due to which this new step has been taken.
The government said the onus will be on OMCs and retail outlet dealers to enforce rules and prevent violations of the order, while state governments and union territories have been directed to take action against black marketing and unauthorized diversion.
–IANS
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