India Restricts Industrial Bulk Fuel Purchases at Retail Petrol Pumps

India's government has implemented temporary restrictions on bulk industrial fuel purchases through retail petrol pumps via the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, issued on June 11. The measure restricts industrial, commercial, and institutional consumers from buying petrol and diesel at retail outlets, directing them instead to bulk sale points and their own consumer-operated pumps. The order was prompted by abnormal demand growth, particularly for diesel, as bulk users exploited a substantial price differential—diesel at Delhi retail pumps costs Rs 95.20 per litre compared to Rs 134.50 at bulk rates. This price gap emerged after state-owned oil companies modulated retail prices to shield ordinary consumers from cost increases following the Middle East crisis in late February, while bulk consumers continue paying market-linked rates. The government cited disruptions to international petroleum supply chains and shipping logistics as justification, warning that bulk procurement through retail stations could divert supplies from ordinary consumers and create localized shortages. The restrictions include a 200-litre daily purchase cap per customer or vehicle for diesel at retail outlets, with provisions against resale. Violations are punishable under the Essential Commodities Act, and state governments have been directed to enforce the order and combat hoarding and black marketing.