Key facts
- India has restricted institutional and commercial buyers from purchasing motor spirit and high-speed diesel at retail outlets.
- These buyers must now source fuel from bulk sale points or their own consumer pumps.
- The restrictions are effective for an initial period of up to 90 days.
- Retail dealers are limited to selling a maximum of 200 liters of diesel per customer or vehicle per day.
- Resale of diesel purchased from retail outlets is prohibited.
India has implemented restrictions on institutional and commercial buyers, preventing them from purchasing motor spirit and high-speed diesel at retail fuel stations. These entities are now required to source their fuel needs from their own consumer pumps or bulk sale points. The directive, effective for an initial period of up to 90 days, follows a surge in demand for diesel in certain areas due to price differentials between retail pumps and bulk sales. Retail dealers are instructed not to sell more than 200 liters of high-speed diesel to any single customer or vehicle per day, with a prohibition on the resale of the purchased fuel. The government stated the move is necessary due to abnormal demand growth and to ensure equitable availability and prevent localized shortages.