The government has restricted industrial, commercial and , directing them instead to procure fuel from authorised bulk sale points, according to an official order issued by the Ministry of Petroleum and Natural Gas.
The move comes at a time when the prolonged conflict in West Asia has disrupted global energy supply chains, pushed up prices and created pressure on fuel availability. With bulk fuel prices rising sharply, several large consumers had reportedly shifted to cheaper retail pumps, prompting the government to step in to prevent diversion of fuel meant primarily for ordinary vehicle owners.
The Ministry’s order, titled the Motor Spirit and High Speed (Temporary Regulation of Supply through Retail Outlets) Order, 2026, said there had been an “abnormal increase” in the sale of and diesel through retail outlets in certain parts of the country due to industrial, commercial and institutional consumers moving to retail pumps because of the price advantage.
The issue became particularly visible in diesel. For example, retail diesel prices in Delhi were around Rs 95 per litre, while bulk diesel was priced at around Rs 134 per litre, making petrol pumps a cheaper option for large consumers such as factories, construction companies and commercial establishments.
The government said the restrictions are aimed at ensuring that fuel sold through retail outlets remains available for ordinary consumers and is not diverted for large-scale industrial use.
The conflict in West Asia, which intensified earlier this year, has disrupted global energy markets and increased concerns over oil supplies, particularly through critical shipping routes.
India, which imports the majority of its crude oil requirement, is highly exposed to such disruptions.
The volatility in global oil markets led to a sharp increase in bulk fuel prices. However, retail fuel prices remained relatively lower, creating a large price gap.
For example, diesel sold at petrol pumps in Delhi was priced around Rs 95 per litre, while bulk diesel prices were around Rs 134 per litre.
This difference made retail pumps a cheaper source of fuel for industries, construction companies, large institutions and commercial establishments that require diesel in large quantities for machinery, generators and vehicle fleets.
The restrictions mainly affect industrial units, factories, construction companies, commercial establishments and institutions that purchase fuel in large quantities.
These users will now have to buy petrol and diesel through authorised bulk supply channels instead of retail fuel stations.
The order does not impact ordinary vehicle owners. People can continue buying petrol and diesel for their cars, motorcycles and other vehicles as usual.
The government has, however, limited diesel sales in approved containers to 200 litres per customer or vehicle per day. The fuel purchased through such containers cannot be resold.
The Centre fears that if large users continue purchasing fuel from retail pumps, it could lead to local shortages and affect supplies meant for ordinary consumers.
The order also aims to prevent hoarding, unauthorised procurement and diversion of fuel during a period of global energy uncertainty.
The restrictions will initially remain in force for up to 90 days, although the government can extend them by issuing a fresh order.
It can also grant exemptions for specific consumers, regions or transactions if required.
For most Indians, nothing changes at the fuel station. The order is aimed at stopping large users from taking advantage of cheaper retail fuel and ensuring that petrol pumps continue to serve their primary purpose — meeting the needs of everyday consumers.