India has imposed restrictions on the bulk sale of petrol and high-speed diesel (HSD) at retail fuel outlets, and directing institutional and commercial users to procure fuel through dedicated consumer or captive pumps, according to an official government notification.
The directive, aimed at preventing the diversion of retail-priced fuel, will remain in force for an initial period of 90 days unless modified or withdrawn through a separate order.
Under the new guidelines, retail fuel dealers have been instructed not to sell more than 200 litres of high-speed diesel to a single customer or vehicle in a day. The order also prohibits the resale of diesel purchased from retail outlets, tightening oversight of bulk fuel distribution and movement.
The government said the measure is intended to ensure that fuel sold through retail pumps is primarily used by individual consumers, while large institutional and commercial users meet their requirements through authorised channels.
The restriction is expected to affect bulk fuel buyers and could alter demand patterns for oil marketing companies such as Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Indian Oil Corporation Limited, which may face increased scrutiny over retail fuel distribution practices.
Shares of oil marketing companies are likely to remain in focus following the development.
The move comes amid heightened volatility in global energy markets as India navigates supply-side pressures arising from geopolitical tensions in the Middle East. Fuel prices in the country have witnessed several upward revisions in recent weeks.
Petrol prices in Delhi have risen by ₹4.75 per litre, or around 5 per cent, since May 15, while diesel prices have increased by ₹4.82 per litre, or approximately 5.5 per cent, reflecting sustained pressure from rising global crude oil prices.
The increase follows continuing tensions in the Middle East, which have disrupted shipping routes and tightened supplies through the Strait of Hormuz, a critical chokepoint that handles nearly one-fifth of global oil trade. The disruption has pushed international crude oil prices higher, increasing pressure on fuel-importing nations.
While many countries passed on rising fuel costs to consumers soon after global prices surged, India maintained retail fuel prices at existing levels for an extended period. According to government officials, India remained the only major economy to keep fuel prices unchanged during the first 76 days of the disruption linked to the Strait of Hormuz before implementing price revisions.
The government has not indicated whether the temporary restrictions could be extended beyond the initial 90-day period, but officials said the measures are aimed at ensuring fuel availability, improving monitoring of retail sales, and preventing misuse of subsidised distribution channels.
(With IANS inputs)
