India Restricts Industrial Bulk Fuel Purchases at Retail Petrol Pumps

The Indian government's Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, prohibits industrial, commercial, and institutional users from procuring petrol and diesel at retail pumps, requiring them to use dedicated bulk supply channels or their own consumer pumps. The order also caps retail diesel purchases at 200 litres per customer or vehicle per day, restricted to vehicle fuel tanks or PESO-approved containers, and explicitly bans resale. Authorities cited the 'current prevailing geopolitical situation' disrupting international petroleum supply chains as the backdrop, while noting that state-owned oil marketing companies are currently incurring losses of approximately Rs 500 crore per day on combined retail sales of petrol, diesel, and LPG. The Hindu reported that retail outlets in 80 districts saw more than 30% diesel sales growth year-on-year in May, and that private oil marketing company diesel sales fell roughly 58% over the same period as their pump prices more closely tracked market rates. The government also flagged 'blatant instances' of large diesel purchases in jerry cans for resale, describing the order as enabling strict action against hoarding and black marketing. Public-sector oil marketing companies and authorised retailers are empowered to enforce the restrictions, while state governments and union territories have been directed to act against hoarding, unauthorised procurement, and diversion. Violations are punishable under the Essential Commodities Act, and the government retains authority to grant exemptions and extend the order through fresh notification.