Centre Caps Diesel Purchases At 200 Litres Per Day To Ensure Supply Stability
Government introduces temporary diesel purchase cap at retail outlets to prevent bulk diversion and stabilise supply.
The Centre has introduced a temporary regulatory cap on diesel sales at retail fuel outlets in an effort to curb hoarding, diversion, and black marketing, amid rising demand pressures at public sector fuel stations across several regions of the country.
The Ministry of Petroleum and Natural Gas announced the measure through 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 government said the step has been taken to ensure uninterrupted diesel availability for genuine retail consumers amid volatility in global energy markets.
Under the new rules, public sector oil marketing company outlets will be permitted to dispense diesel only into vehicle fuel tanks or PESO-approved containers. A daily limit of 200 litres per customer or vehicle has also been introduced. Authorities have clarified that resale of diesel purchased from retail stations will be strictly prohibited, and violations will attract penalties under the Essential Commodities Act, 1955, along with other applicable provisions.
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Officials said the restrictions are primarily aimed at bulk consumers, including industrial and commercial users who have increasingly shifted purchases from dedicated bulk supply channels to retail outlets. This shift, they noted, has been driven by a significant price gap of nearly ₹40 per litre between retail and bulk diesel rates, creating incentives for diversion and resale through intermediaries using portable containers.
Government data indicates that the trend has been particularly widespread, with 327 districts reporting diesel sales growth of more than 10% at PSU retail outlets in May, while 80 districts recorded increases exceeding 30% compared to the same period last year. Authorities say such spikes have raised concerns about artificial shortages and uneven distribution.
The ministry emphasised that the new cap will not affect ordinary motorists, stating that the 200-litre daily limit is far above the requirement of most private vehicle users. It added that the move is designed to stabilize supply chains, prevent misuse of subsidised or retail-priced fuel, and ensure smoother availability of diesel for transportation and everyday mobility needs.
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