New Delhi: The Ministry of Petroleum and Natural Gas has notified the Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026 to prevent black marketing and hoarding of diesel and ensure uninterrupted supply for retail consumers.
The temporary order, initially valid for 90 days, comes amid a sharp rise in diesel demand at public sector oil company retail outlets. According to the ministry, industrial, institutional and commercial consumers have increasingly shifted purchases from dedicated consumer pumps to retail outlets to benefit from lower retail diesel prices. Private oil marketing companies also witnessed a 58 per cent decline in diesel sales in May 2026 due to higher prices.
Government data showed that diesel sales at PSU retail outlets rose by over 10 per cent in 327 districts in May, with 80 districts recording growth above 30 per cent.
Under the new rules, PSU oil companies—Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation—will supply diesel only into vehicle tanks or PESO-approved containers, with a maximum limit of 200 litres per customer or vehicle per day. Bulk consumers are barred from purchasing diesel from retail outlets and must procure supplies through dedicated consumer pumps.
The ministry said the measures target large buyers exploiting a price gap of around Rs 40 per litre between retail and bulk diesel. Authorities have reported instances of diesel being purchased in large quantities and resold illegally.
The government added that PSU oil companies are currently absorbing losses of about Rs 500 crore per day on petrol, diesel and LPG sales to shield consumers from the impact of ongoing West Asia disruptions. Violations of the order will attract penalties under the Essential Commodities Act, 1955. (ANI)
Also Read: Petrol, diesel prices: Centre bearing huge burden through excise duty cut, says Piyush Goyal