The central government of India has imposed temporary restrictions on the bulk sale of petrol and diesel at retail fuel outlets, directing institutional and commercial users to shift to dedicated consumer or captive fuel pumps for their requirements.
The order, issued by the government, limits the sale of motor spirit (petrol) and high-speed diesel (HSD) at retail outlets and will remain effective for an initial period of up to 90 days unless modified or withdrawn through another directive. The directive aims to prevent diversion of retail-priced fuel and ensure that petrol pumps primarily serve individual consumers instead of large-scale buyers.
The development comes at a time when global energy markets are facing pressure due to geopolitical tensions in the Middle East. India has witnessed upward revisions in fuel prices in recent weeks amid crude oil volatility.
New rules for retail fuel buyers
Under the revised guidelines, retail outlet dealers have been instructed to follow stricter limits on diesel sales. Key restrictions introduced:
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Retail outlets cannot sell more than 200 litres of high-speed diesel to a single customer or vehicle in one day.
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Diesel purchased from retail fuel stations cannot be resold.
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Institutional and commercial users must source fuel through their authorised consumer or captive pumps.
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Bulk movement of retail fuel will face tighter monitoring.
The restrictions could affect bulk fuel buyers and may lead to closer scrutiny of retail fuel distribution by oil marketing companies, including Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd and Indian Oil Corporation Ltd.
Petrol, diesel prices rise amid global crude pressure
Petrol prices in Delhi have increased by Rs 4.75 per litre, around 5 per cent, since May 15, while diesel prices have risen by Rs 4.82 per litre, about 5.49 per cent.
The increase followed disruptions in global shipping routes and concerns over supply flows through the Strait of Hormuz, a key route handling nearly one-fifth of global oil trade.
According to government officials, India was the only major economy to keep fuel prices unchanged for the first 76 days of the Hormuz disruption before beginning price adjustments.