Government Lifts Fuel Purchase Restrictions for Commercial Users: What You Need to Know

Fuel Purchase Restrictions Lifted

New Delhi: On Monday, the government announced the removal of temporary restrictions on the retail sale of petrol and diesel for commercial consumers, effective July 1. This decision allows industrial, institutional, and transport sector users to resume normal fuel purchases after a brief period of limitations aimed at protecting domestic fuel supplies.

A government directive confirms that commercial buyers can now purchase petrol and diesel from retail stations without any quantity restrictions.

This action concludes the measures that were implemented earlier this month due to concerns regarding disruptions in global energy trade and fluctuating fuel demand.

Previously, the Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, issued on June 12, had prohibited industrial, institutional, and commercial consumers from acquiring fuel from retail outlets, capping diesel sales at 200 litres per customer or vehicle daily.

With these restrictions lifted, transport operators and other commercial users can now buy fuel from retail outlets without limitations.

When the restrictions were first introduced, the Ministry of Petroleum and Natural Gas indicated that the measures aimed to prevent black marketing, reduce diesel hoarding, and stop the diversion of fuel from retail outlets. They clarified that these curbs were temporary and could last up to 90 days if deemed necessary.

Officials reassured that the restrictions did not signify a shortage of petrol or diesel in the country and were not intended to ration fuel supplies.

The government pointed to unusual demand patterns at various fuel stations as a primary reason for the temporary measures. The ministry noted that many industrial and bulk diesel consumers had begun purchasing fuel from retail outlets operated by public sector oil marketing companies instead of dedicated consumer pumps.

This shift was largely influenced by a significant price disparity, with retail diesel prices approximately Rs 40 per litre lower than bulk diesel prices, which continued to reflect international market trends.