- The Centre introduced a 90-day regulation to curb diesel hoarding and black marketing
- Retail fuel stations can sell diesel only into vehicle tanks or PESO-approved containers
- A daily cap of 200 litres per customer or vehicle is imposed to ensure supply continuity
The Centre has introduced a temporary regulation to curb diesel hoarding and black marketing after a sharp rise in demand at public sector fuel stations led to supply pressures in several areas, the Ministry of Petroleum and Natural Gas said in a statement.
The ministry on Friday notified the "Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026", which will remain in force for up to 90 days. The move aims to ensure uninterrupted diesel availability for retail consumers amid disruptions in global energy markets.
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As per the order, retail fuel stations operated by public sector oil marketing companies will be allowed to dispense diesel only into vehicle fuel tanks or PESO-approved containers, with a cap of 200 litres per day per customer or vehicle. Diesel purchased from retail outlets cannot be resold. Violations will attract penalties under the Essential Commodities Act, 1955 and other applicable laws.
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The ministry said large industrial, institutional and commercial consumers have increasingly shifted purchases from dedicated consumer pumps to retail outlets to take advantage of a nearly Rs 40-per-litre gap between retail and bulk diesel prices. Authorities also flagged instances of diesel being purchased in large quantities through jerry cans and subsequently resold.
According to government data, 327 districts recorded diesel sales growth of over 10% at PSU retail outlets in May, while 80 districts saw growth exceeding 30% compared with the same period last year.
The ministry said the restrictions are targeted at bulk buyers and will not affect ordinary motorists, noting that the 200-litre limit is well above the requirements of most private vehicles.
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