Govt bars commercial users from buying bulk fuel at retail petrol pumps, caps diesel sales to trucks

Govt bars commercial users from buying bulk fuel at retail petrol pumps, caps diesel sales to trucks

Theindiapostdaily.com – The Central government has restricted commercial and industrial users from purchasing petrol and diesel at retail fuel stations, directing them to source fuel exclusively through bulk sales points, according to a Reuters report. This directive follows a government order that aims to address supply chain challenges and stabilize fuel prices.

As part of these measures, retail fuel station dealers are limited to selling 200 litres of diesel per customer or vehicle daily. The policy prevents the resale of diesel purchased at retail, which has been a concern due to shortages in certain regions. For instance, in Delhi, diesel at retail pumps costs ₹95.20 per litre, while bulk sales are priced higher at ₹134.50 per litre.

Reasons Behind the Restrictions

The government emphasized that these rules are essential to ensure fair distribution of fuels nationwide. By limiting bulk purchases at retail, it seeks to prevent diversion and hoarding, which could exacerbate local shortages. This decision comes amid ongoing disruptions in oil supply caused by geopolitical tensions in West Asia.

“Geopolitical tensions have strained global petroleum supply chains, shipping logistics, and product availability, making prudent management and conservation of supplies necessary,” stated the government’s order, referencing the US-Israeli conflict with Iran.

India, a net exporter of refined fuels, faces challenges as state-owned fuel retailers, including Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp, experience revenue losses. They sell diesel at market rates to industrial buyers but subsidize prices for retail customers, resulting in a loss of ₹36.5 per litre on diesel and ₹9 per litre on petrol.

State fuel retailers control approximately 90% of India’s over 1,00,000 fuel stations. The new restrictions will remain in effect for up to 90 days unless revoked earlier through a separate directive.