India Caps Diesel Sales at Retail Pumps for Bulk Buyers

India barred institutional and commercial customers from buying petrol and high-speed diesel at retail outlets, a government notification showed Thursday. Those buyers must now source fuel from their own consumer pumps, the notification said.

Retail dealers have been directed not to sell more than 200 litres of high-speed diesel to a single customer or vehicle per day. The fuel cannot be resold. The restrictions run for an initial period of up to 90 days unless revoked by another order.

The measure targets large-scale fuel consumers such as fleet operators, logistics companies and industrial units. Directing them to their own storage and dispensing facilities is meant to regulate bulk consumption and improve supply discipline at retail outlets, the notification indicated.

The 200-litre cap at retail pumps aims to curb hoarding and unauthorized resale of diesel, which is the most widely used commercial fuel in India. Diesel accounts for roughly 40% of the country's petroleum product demand.

India meets about 85% of its crude oil needs through imports, making domestic fuel distribution a recurring policy focus. Shifts in retail supply rules can affect demand patterns for crude oil and refined products, especially during periods of price volatility.

The restriction is in place for 90 days unless another order lifts it sooner. The notification did not specify what would trigger an early revocation.