India Introduces Fuel Rationing Framework Amid Energy Crisis Driven by Iran War

India's government has established a legal framework — the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026 — that allows authorities to cap bulk fuel purchases from retail pumps during supply crunches. The order was prompted in part by industrial and commercial consumers shifting to cheaper retail stations, straining supplies meant for ordinary consumers. Under the framework, bulk buyers can be redirected to authorised channels, and retail outlets may be barred from selling more than 200 litres of diesel per customer per day; resale of fuel procured under the provision is prohibited. The order does not impose immediate nationwide restrictions but can be invoked as needed, with any individual order lasting up to 90 days and subject to extension. The broader context is a deepening energy crisis driven by the war in Iran, which has pushed up global energy costs and forced Indian authorities into crisis mode — including weighing spending cuts and seeking overseas capital. Images from retail fuel stations show long queues of motorcycles, scooters, and auto-rickshaws, reflecting the real-world pressure on retail supply.