Govt curbs commercial users from buying bulk fuel buying at retail petrol pumps, caps diesel sales to trucks

India’s Central government has imposed restrictions on commercial and industrial buyers purchasing petrol and diesel from retail fuel pumps, requiring them to source fuel exclusively from bulk supply points. The order, issued late Thursday, limits diesel sales to 200 litres per customer or vehicle daily and prohibits resale, citing supply disruptions linked to geopolitical tensions, including the U.S.-Israeli conflict with Iran. The measures target commercial users like trucking companies, which have favored retail pumps due to lower prices—₹95.20 per litre in Delhi compared to ₹134.50 for bulk diesel. Retail stations are directed to enforce the cap to prevent local shortages and ensure equitable fuel distribution nationwide. The government justified the restrictions as necessary to prevent hoarding, maintain fair pricing, and protect state-run oil retailers—Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp—from losses. Diesel sales at subsidized rates cost retailers ₹36.5 per litre, while petrol losses stand at ₹9 per litre, straining profitability despite India being a net exporter of refined fuels. The order cites global supply chain strains from geopolitical conflicts, emphasizing the need for conservation. The restrictions will remain in place for up to 90 days unless revoked earlier. State fuel retailers, controlling 90% of India’s over 100,000 stations, face revenue losses due to subsidized sales, prompting the government to redirect commercial demand to bulk supply points.