By Dharmesh Prajapati

The Centre has issued a temporary order to regulate the supply and distribution of petrol and diesel through retail outlets, citing concerns over global geopolitical uncertainties, disruptions in petroleum supply chains and the need to ensure uninterrupted fuel availability for retail consumers.

The Ministry of Petroleum and Natural Gas notified the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, which came into force on June 11 after its publication in the Official Gazette.

The government said the order has been issued in the public interest to maintain fuel supplies, prevent diversion and hoarding, and ensure equitable availability of petrol and diesel at fair prices across the country.

Who can no longer buy petrol and diesel?

Under the new order, institutional, direct, industrial and commercial consumers will no longer be allowed to procure Motor Spirit (petrol) and High Speed Diesel (diesel) from retail fuel stations.

Such consumers will have to meet their fuel requirements only through their designated consumer pumps.

The government said it had observed abnormal increases in fuel sales at retail outlets in some parts of the country due to industrial, commercial and institutional consumers shifting their purchases to retail pumps because of differences between retail and bulk fuel prices.

According to the notification, this trend has the potential to divert supplies meant for ordinary consumers and create localised shortages.

Diesel Sale Restricted to 200 Litres Per Day

The order also places restrictions on the sale of diesel through retail outlets. Retail fuel stations will be allowed to dispense diesel only into vehicle fuel tanks or containers approved by the Petroleum and Explosives Safety Organisation (PESO).

In addition, the quantity of diesel sold to a customer or vehicle will not exceed 200 litres in a day. The government has also prohibited the resale of diesel purchased from retail outlets.

The restriction is aimed at preventing hoarding, diversion and unauthorised bulk procurement of fuel.

OMCs and Dealers Directed to Ensure Compliance

The notification places responsibility on Oil Marketing Companies (OMCs) and retail outlet dealers to ensure strict compliance with the restrictions.

Public sector fuel retailers such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), along with other authorised fuel marketers, will be required to implement the directions and prevent any attempt to bypass the rules.

The government said the measures are necessary to safeguard supplies intended for retail consumers and maintain smooth fuel distribution across the country.

Order Valid for Up to 90 Days

The Centre said any directions issued under the order can remain in force for an initial period of up to 90 days from the date of issue or until withdrawn earlier through another order.

If the government decides that the restrictions need to continue beyond the initial period, a fresh extension order will have to be issued.

The notification also allows the government to grant exemptions through special orders. Specific consumers, categories of consumers, geographical areas or particular transactions may be exempted from some or all provisions of the order if considered necessary.

Search, Seizure and Penal Action for Violations

To enforce compliance, the government has authorised certain officials to conduct search and seizure operations. These powers can be exercised by gazetted officers of the Central or State governments, authorised police officers not below the rank of Deputy Superintendent of Police, and authorised oil company officers not below the rank of sales officer.

State governments and Union Territory administrations have also been directed to take all necessary measures to prevent hoarding, black marketing, unauthorised procurement, diversion and other fuel-related malpractices.

The notification states that any violation of the order or directions issued under it will attract action under the provisions of the Essential Commodities Act, 1955, and other applicable laws.

The Centre said the temporary measures have been introduced to ensure uninterrupted availability of petrol and diesel for transportation, agriculture, emergency services, national security and other essential economic activities amid uncertainty in global energy markets.