90-day ban on bulk purchase of fuel from petrol pumps:Decision taken due to difference between retail and wholesale prices

The government has banned bulk purchase of petrol and diesel from retail petrol pumps for industrial, commercial, and institutional uses. According to an official order issued by the Ministry of Petroleum and Natural Gas, these customers will now have to purchase fuel only from bulk sale points. This restriction has been implemented initially for 90 days, which can be extended by issuing a new government order. Decision taken due to difference between retail and wholesale prices The ministry has issued the ‘Motor Spirit and High Speed Diesel Order-2026’ following an abnormal increase in the sale of petrol and diesel through retail outlets in some parts of the country. The order states that due to the large difference between wholesale and retail prices, commercial and institutional consumers were shifting towards retail outlets, which led to this increase in sales. ₹39.30 per litre difference between wholesale and retail prices in Delhi This price difference can be understood through the example of Delhi. In Delhi, the price of diesel at retail pumps is ₹95.20 per liter, while its wholesale price is ₹134.50 per liter. Government oil companies had kept retail prices low to protect common consumers from rising costs after the West Asia crisis, while market-linked prices are charged from wholesale consumers like telecom towers and power generation units. Impact on global supply chain According to the ministry, due to the current geopolitical situation in some parts of the world, there has been an impact on the international petroleum supply chain, shipping logistics, and availability of petroleum products. Amidst this situation, due to the difference between wholesale and retail prices, abnormal sales have been observed at retail pumps in some parts of the country. Limit of only 200 liters of diesel purchase fixed on per day basis Under the new order, commercial consumers will now have to fulfill their requirements only from their own consumer pumps or wholesale sales channels. Additionally, diesel sales at retail outlets have been restricted only to vehicle fuel tanks or ‘Petroleum and Explosives Safety Organization’ (PESO) approved containers. Retail diesel purchase has been capped at a maximum of 200 liters per day per customer or vehicle, and this diesel cannot be resold. Step taken to prevent disruption in essential services The government says that bulk purchases through retail stations can affect the supply coming to common consumers, which could create a situation of local shortage and disruption in essential services. To maintain equal availability and distribution of petrol and diesel in public interest, it became necessary to regulate this supply. Strict action will be taken on hoarding and black marketing The responsibility of implementing this order has been given to public sector oil marketing companies and other authorized fuel retailers. Along with this, state governments and union territory administrations have been directed to take strict action against hoarding, black marketing, unauthorized purchases and other irregularities. Violation of this order will be punished under the Essential Commodities Act. Government will give exemption in special circumstances This order also gives the government the authority to exempt any consumer, class of consumers, sector or category of transaction from these provisions through a special order. Earlier, the Petroleum Ministry had said that there is no cause for concern regarding the availability of petrol, diesel or LPG and advised consumers to avoid panic buying. Who are considered bulk users? Bulk diesel users mainly include transport fleets, telecom infrastructure operators (mobile towers), large industries, construction companies and institutions using generators for power generation (captive power generation). Oil companies use market-linked pricing for these.