Government caps diesel sales at 200 litres per customer to curb black marketing; restrictions to stay for 90 days
The Centre has imposed a temporary 200-litre cap on diesel purchases at retail outlets and barred bulk consumers from buying fuel from pumps, as it seeks to curb black marketing and prevent supply disruptions. The restrictions, aimed at protecting retail consumers, will remain in force for up to 90 days.
- Jun 12, 2026,
- Updated Jun 12, 2026 3:33 PM IST
The Centre has introduced temporary restrictions on the sale of diesel through retail outlets to prevent black marketing and hoarding, amid what it described as an extraordinary shift in demand caused by bulk consumers taking advantage of lower retail fuel prices.
In a notification issued on Thursday, the Ministry of Petroleum and Natural Gas announced the "Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026", which will remain in force for up to 90 days.
Under the new rules, retail outlets operated by public sector oil marketing companies (OMCs) will dispense diesel only into vehicle tanks or Petroleum and Explosives Safety Organisation (PESO)-approved containers, with a maximum limit of 200 litres per customer or vehicle per day.
The ministry clarified that the restrictions are aimed at preventing diversion and hoarding by large consumers and are not expected to affect ordinary vehicle owners.
"The 200-litre cap is far beyond what any private vehicle would need," the government said, adding that the measures are intended to protect retail consumers from intermittent supply disruptions.
DID YOU KNOW: Petrol, Diesel prices today, June 12: Check prices in Delhi, Mumbai, Kolkata, Chennai, Hyderabad
Why has the government stepped in?
According to the ministry, industrial, institutional and commercial users have increasingly shifted diesel purchases from dedicated consumer pumps to retail outlets because retail diesel is currently around ₹40 per litre cheaper than bulk diesel.
The trend has intensified following a sharp decline in diesel sales by private oil marketing companies, whose high-speed diesel (HSD) sales dropped about 58% in May 2026 after they raised prices.
As a result, demand at PSU-operated outlets surged. Data for May showed that 327 districts recorded more than 10% growth in diesel sales compared with the same period last year, while 80 districts registered growth exceeding 30%.
The government said blatant cases of large quantities of diesel being purchased in jerry cans and subsequently resold had come to its notice.
MUST READ: Govt may reconsider higher ethanol mandate; what it means for consumers
Bulk consumers barred
Under the order, industrial and institutional consumers have been prohibited from procuring diesel from retail pumps and must instead source supplies through designated consumer pumps.
Oil marketing companies and retail outlet dealers have been made responsible for ensuring compliance and preventing attempts to bypass the restrictions.
State governments and Union Territory administrations have also been directed to take action against black marketing and unauthorized diversion of fuel.
Violations of the order will attract penalties and legal action under the Essential Commodities Act, 1955 and other applicable laws.
MUST READ: Govt waives excise duty on petrol with higher levels of ethanol
PSU oil companies absorbing losses
The government said public sector OMCs — Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation — are currently absorbing losses of nearly ₹500 crore per day on the sale of petrol, diesel and domestic LPG to shield consumers from the impact of the ongoing West Asia crisis.
It said this support is intended to maintain affordability for households, farmers and other end-users and not to subsidize industrial and bulk consumption.
No shortage of petrol or diesel
Emphasizing that the order is a temporary measure, the government stressed that it should not be viewed as fuel rationing.
"There is no shortage of petrol or diesel in the country," the ministry said.
India remains the world's fourth-largest refiner and the fifth-largest exporter of refined petroleum products, it added, noting that the government remains committed to ensuring uninterrupted fuel supplies and safeguarding consumer interests through proactive measures.
MUST READ: E20, E30 fuel concerns may keep 43% of buyers away from new vehicles: Survey
The Centre has introduced temporary restrictions on the sale of diesel through retail outlets to prevent black marketing and hoarding, amid what it described as an extraordinary shift in demand caused by bulk consumers taking advantage of lower retail fuel prices.
In a notification issued on Thursday, the Ministry of Petroleum and Natural Gas announced the "Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026", which will remain in force for up to 90 days.
Under the new rules, retail outlets operated by public sector oil marketing companies (OMCs) will dispense diesel only into vehicle tanks or Petroleum and Explosives Safety Organisation (PESO)-approved containers, with a maximum limit of 200 litres per customer or vehicle per day.
The ministry clarified that the restrictions are aimed at preventing diversion and hoarding by large consumers and are not expected to affect ordinary vehicle owners.
"The 200-litre cap is far beyond what any private vehicle would need," the government said, adding that the measures are intended to protect retail consumers from intermittent supply disruptions.
DID YOU KNOW: Petrol, Diesel prices today, June 12: Check prices in Delhi, Mumbai, Kolkata, Chennai, Hyderabad
Why has the government stepped in?
According to the ministry, industrial, institutional and commercial users have increasingly shifted diesel purchases from dedicated consumer pumps to retail outlets because retail diesel is currently around ₹40 per litre cheaper than bulk diesel.
The trend has intensified following a sharp decline in diesel sales by private oil marketing companies, whose high-speed diesel (HSD) sales dropped about 58% in May 2026 after they raised prices.
As a result, demand at PSU-operated outlets surged. Data for May showed that 327 districts recorded more than 10% growth in diesel sales compared with the same period last year, while 80 districts registered growth exceeding 30%.
The government said blatant cases of large quantities of diesel being purchased in jerry cans and subsequently resold had come to its notice.
MUST READ: Govt may reconsider higher ethanol mandate; what it means for consumers
Bulk consumers barred
Under the order, industrial and institutional consumers have been prohibited from procuring diesel from retail pumps and must instead source supplies through designated consumer pumps.
Oil marketing companies and retail outlet dealers have been made responsible for ensuring compliance and preventing attempts to bypass the restrictions.
State governments and Union Territory administrations have also been directed to take action against black marketing and unauthorized diversion of fuel.
Violations of the order will attract penalties and legal action under the Essential Commodities Act, 1955 and other applicable laws.
MUST READ: Govt waives excise duty on petrol with higher levels of ethanol
PSU oil companies absorbing losses
The government said public sector OMCs — Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation — are currently absorbing losses of nearly ₹500 crore per day on the sale of petrol, diesel and domestic LPG to shield consumers from the impact of the ongoing West Asia crisis.
It said this support is intended to maintain affordability for households, farmers and other end-users and not to subsidize industrial and bulk consumption.
No shortage of petrol or diesel
Emphasizing that the order is a temporary measure, the government stressed that it should not be viewed as fuel rationing.
"There is no shortage of petrol or diesel in the country," the ministry said.
India remains the world's fourth-largest refiner and the fifth-largest exporter of refined petroleum products, it added, noting that the government remains committed to ensuring uninterrupted fuel supplies and safeguarding consumer interests through proactive measures.
MUST READ: E20, E30 fuel concerns may keep 43% of buyers away from new vehicles: Survey