Diesel, petrol can be sold to commercial buyers from July
What's the story
India will lift the restrictions on petrol and diesel sales for commercial buyers from July 1. The decision comes as a relief to transport operators and industrial users who were affected by the limitations imposed in June. The restrictions were enforced through an order issued by the Ministry of Petroleum and Natural Gas on June 12, under the Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026.
Regulation rationale
Measures were temporary: Petroleum ministry
The June order was aimed at curbing black marketing and hoarding of diesel, preventing diversion from retail outlets, and ensuring supplies for regular consumers. The ministry had clarified that these measures were temporary and not a rationing measure. It also stressed there was no shortage of petrol or diesel in India. The restrictions were introduced after bulk diesel consumers shifted their purchases to petrol pumps operated by public sector oil marketing companies (OMCs).
Market dynamics
Price difference between bulk, retail diesel
The petroleum ministry noted that industrial, institutional, and commercial consumers had shifted some of their fuel procurement from dedicated consumer pumps to retail outlets, due to the price difference between bulk and retail diesel. Retail diesel was nearly ₹40 per liter cheaper than bulk diesel as pricing for industrial and bulk supplies continued to follow international market prices.
Sales surge
Key highlights of June order
The June order also directed Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum Corporation to ensure diesel at retail outlets was dispensed only into vehicle tanks or Petroleum and Explosives Safety Organisation-approved containers. It prohibited resale of diesel bought from retail outlets and placed compliance responsibility on OMCs and retail outlet dealers.