The government has notified temporary rules to curb black marketing and hoarding of diesel at retail outlets, while stating that there is no shortage of petrol or diesel in the country, according to a statement by the Ministry of Petroleum & Natural Gas on Friday, 12 June.
The ministry said the Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, has been notified as a temporary measure, initially valid for up to 90 days, to ensure diesel availability for retail consumers.
Under the order, retail outlets will dispense diesel only into vehicle tanks or Petroleum and Explosives Safety Organisation (PESO)-approved containers, with a maximum limit of 200 litres per day per customer or vehicle.
Diesel purchased at retail outlets cannot be resold.
The ministry said the order is aimed at large and bulk consumers who are procuring diesel from retail outlets to take advantage of the price gap between retail and bulk diesel.
According to the statement, industrial, direct, institutional and commercial customers have been shifting diesel purchases from dedicated consumer pumps to retail outlets because retail diesel is around ₹40 per litre cheaper than bulk diesel.
The ministry said this diversion of High-Speed Diesel (HSD) by bulk consumers has caused localised supply issues and possible disruption for genuine retail customers and essential services.
The government said the measure will not affect ordinary citizens, as the 200-litre cap is far beyond what a private car or two-wheeler would normally require.
The ministry said diesel sales through public sector oil marketing company retail outlets rose sharply in May 2026 compared with the same period last year.
As many as 327 districts recorded diesel sales growth of more than 10%, while 80 districts saw growth of more than 30%.
It also said private oil marketing companies recorded a decline of around 58% in HSD sales during May 2026 due to higher prices fixed by them.
The Central Government has directed public sector oil marketing companies including Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) to ensure compliance with the order.
Oil marketing companies and retail outlet dealers will be responsible for preventing attempts to bypass the restrictions.
State governments and Union Territory administrations have also been directed to act against black marketing, unauthorised diversion and other malpractices to protect the interests of common consumers.
Violations of the order will attract penalties and other legal action under the Essential Commodities Act, 1955 and applicable laws.
The ministry said the measure is not fuel rationing. It added that India remains the world’s fourth-largest refiner and fifth-largest exporter of refined petroleum products.
According to the statement, public sector oil marketing companies are currently absorbing losses of around ₹500 crore per day on the sale of petrol, diesel and domestic LPG to protect retail consumers during the ongoing West Asia disruption.
The government said it remains committed to ensuring uninterrupted fuel supplies, protecting consumer interest and maintaining energy security through timely measures.
