Government has restricted industrial, commercial and institutional users from buying petrol and diesel from petrol pumps and asked them to resentation purpose only.
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Seeking to arrest a recent abnormal increase in sales of petrol and diesel, in an order issued late on Thursday (June 11, 2026), the government barred industrial and commercial consumers from purchasing petrol and diesel from retail outlets and
Additionally, the order also asks retail outlets for not dispensing more than 200 litres of diesel in a day to either a consumer or a vehicle.
The same cannot be resold, the order adds. The directive would be in force for ninety days unless revoked before the stipulated date.
In a statement on Friday (June 12, 2026), the government underlined the latest directive seeks to arrest an “uneven extraordinary demand growth” in some retail outlets that is stemming from consumers of bulk diesel increasingly turning to state-owned oil-marketing companies’ retail outlets.
“This is driven by industrial and direct or institutional and commercial consumers who have been shifting their procurement from their dedicated consumer pumps to retail outlets due to the difference between bulk and retail diesel prices,” it stated.
Bulk diesel is about ₹40 per litre more expensive than the one sold at retail outlets.
Further, according to the government, there has been an about 58% decline in sale of diesel among private oil-marketing companies in May this year — from the same period last year -— owing to comparatively higher prices at their pumps.
Privately-owned oil-marketing companies immediately pass on the elevated pressure onto the final prices of the retail fuels sold at their pumps unlike state-owned companies.
State-owned companies’ retail pumps in 80 districts have witnessed more than 30% growth in sale of diesel during the same period, the statement added.
Describing their recent observations, the government said, “Blatant instances of procurement of large quantities of diesel in jerry cans, and its resale have come to the notice of the Government.”
“This order will enable strict action against such buyers/operators, dealers and officers who are involved in this black marketing and hoarding of diesel,” it said.
The Petroleum Ministry emphasised that seeking to cushion the impact of oil prices, state-owned oil-marketing companies are presently incurring losses of about ₹500 crore per day on the sale of petrol, diesel and LPG combined.
It underlined the price cushion is intended “to protect retail consumers and ensure affordability of fuel for households, farmers and other end-users”.
Consumption of diesel (inclusive of industrial and retail) in May increased approximately 4.7% from the preceding month whilst petrol increased about 6%, according to provisional government data published separately earlier in June.
Published – June 12, 2026 08:27 am IST
