Centre bans industrial, commercial consumers from buying fuel at pumps
What's the story
The Indian government has prohibited commercial and industrial consumers from purchasing petrol and diesel from retail pumps. Instead, they are advised to procure fuel from bulk sale points or their own consumer pumps. The decision was announced through an official order issued by the Ministry of Petroleum and Natural Gas. The order is valid for an initial period of up to 90 days, subject to extension through a new government notification.
Fuel distribution
Order issued in view of 'current prevailing geopolitical situation'
The order aims to ensure "equitable availability" of petrol and diesel across India, prevent hoarding and diversion, and maintain uninterrupted fuel supplies. It was issued in light of the "current prevailing geopolitical situation affecting certain regions of the world," which has disrupted international petroleum supply chains. The government observed abnormal increases in sales through retail outlets due to price differences between retail and bulk sale prices.
Sales cap
Retail outlets can only sell diesel, capped at 200 liters
The order restricts diesel sales at retail outlets to vehicle fuel tanks or PESO-approved containers, capping purchases at 200 liters per customer or vehicle per day. Retail outlet dealers are also prohibited from selling more than this amount in a single day. The government has warned that allowing bulk procurement through retail outlets could divert supplies meant for ordinary consumers and create local shortages.
Anti-hoarding measures
Violation of orders punishable under Essential Commodities Act
Public-sector oil marketing companies and designated fuel retailers have been authorized to enforce these restrictions. The government has also directed the state governments and Union Territory administrations to take action against hoarding, black marketing, unauthorized procurement, diversion, etc. Violation of these orders will be punishable under the Essential Commodities Act.