Key facts
- Bulk consumers are now barred from buying petrol or diesel at retail fuel stations.
- A daily limit of 200 liters per customer for diesel purchases from retail outlets has been implemented.
- The government cited the need to prevent diversion of supplies and address localized shortages.
- The order is effective for 90 days and carries penalties for violations.
- A significant price difference between bulk and retail diesel rates incentivized the shift to retail pumps.
The Indian government has implemented new regulations to restrict bulk consumers from purchasing petrol and diesel from retail fuel stations, capping daily diesel sales at 200 liters per customer. This move, enacted under the Essential Commodities Act, aims to prevent the diversion of fuel supplies intended for the general public and mitigate localized shortages.
The government cited a significant price disparity between bulk and retail diesel as the primary driver for bulk consumers shifting their purchases to retail outlets. Since the start of the Iran war, retail diesel prices have risen by approximately ₹8 per liter, while bulk diesel rates have surged by over ₹50 per liter. This widening gap created a strong incentive for industrial, commercial, and institutional buyers to bypass bulk channels.
Prior to the conflict, bulk diesel constituted about 12% of total diesel sales. However, bulk sales have since declined by 30-40% due to the escalating prices. The shift to retail pumps has led to reports of fuel shortages in smaller towns and rural areas, disrupting essential services. In May, diesel sales by private fuel retailers saw a 58% year-on-year decrease, contrasting with a more than 10% increase at state-run outlets in numerous districts.
The new order will remain in effect for 90 days, with potential fines or imprisonment for violations. The government stated that these measures are crucial to ensure the availability of fuel for the common man and maintain supply chain stability.