The government has prohibited industrial, commercial, and institutional customers from purchasing petrol and diesel from retail pumps, urging them instead to buy fuel from bulk sale points, according to an official notification issued by the Ministry of Petroleum and Natural Gas on Friday.The restrictions may be extended by a new government directive, but they shall only be in effect for a maximum of 90 days.The ministry issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026 following what it called abnormal increases in petrol and diesel sales through retail outlets in certain parts of the country.The notification highlighted that the increase was driven by industrial, commercial and institutional consumers shifting to retail outlets due to price gap between retail and bulk sale prices.Retail fuel pumps in Delhi charge Rs 95.20 per litre, while bulk diesel sales cost Rs 134.50 per liter.Following the West Asia crisis in late February, state-owned oil marketing companies maintained retail pump prices lower to protect regular consumers from cost increases, which caused the price disparity to expand. Market-linked rates apply to bulk customers, such as telecom towers and enterprises that use diesel for feedstock needs and power generation.According to the notification, “It has been observed in current situation that abnormal increases in sales of Motor Spirit (petrol) and High Speed Diesel (diesel) through Retail Outlets in certain parts of the country are driven by shifting of industrial, commercial and institutional consumers to Retail Outlets owing to the price difference between retail and bulk sale prices.”The order may prohibit institutional, commercial, and industrial customers from purchasing petrol or diesel from retail fueling stations. They will have to use their own consumer pumps or bulk sales procedures to source their requirements.Additionally, only vehicle fuel tanks or containers authorized by the Petroleum and Explosives Safety Organization may sell diesel at retail stores. The daily limit for retail diesel purchases per client or vehicle is 200 liters.Such diesel “cannot be resold”, as per the notification.Bulk purchases made through retail outlets, according to the government, could divert supplies meant for regular customers and raise the risk of localized shortages and disruptions of vital services.“The Government is satisfied that it is necessary and expedient in the public interest to regulate the supply of Motor Spirit and High Speed Diesel through Retail Outlets for equitable availability and distribution,” the notification said.The order gives authorized fuel retailers and public-sector oil marketing firms the authority to implement the restrictions. Additionally, it mandates that state governments and administrations of Union territories take action against unlawful procurement, hoarding, black selling, diversion, and other malpractices.The notification stated that any violation would be subject to penalties under the Essential Commodities Act.Through a special order, the government can exempt any consumer, class of consumers, area, transaction, or category of transactions from all or any of its rules.