NEWS: The Ministry of Petroleum and Natural Gas has notified the Motor Spirit and High‑Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026.
ABOUT
- Aim – To curb black marketing and hoarding of diesel
- To protect retail consumers during extraordinary demand shifts caused by price differences between bulk and retail diesel.
- Validity of the orderà 90 days.
Key Provisions of the Order
- Retail Limità Diesel dispensed only into vehicle tanks or PESO‑approved containers, capped at 200 litres per day per customer/vehicle.
- Restriction – Industrial, institutional, and commercial bulk consumers prohibited from sourcing diesel at retail outlets; must procure via consumer pumps.
- Compliance –
- Oil Marketing Companies (OMC),
- IOCL (Indian Oil Corporation Limited),
- BPCL (Bharat Petroleum Corporation Limited),
- HPCL (Hindustan Petroleum Corporation Limited), and
- Dealers responsible for enforcement are punishable under the Essential Commodities Act, 1955 if violated.
- Bulk consumers shifted procurement to retail outlets due to Rs.40/litre price gap between bulk and retail diesel.
- Impact –> Public Sector Undertaking (PSU) OMCs recorded 10% growth in diesel sales across 327 districts in May 2026; 80 districts saw 30% growth.
- Consumer Protectionà PSU OMCs absorbing Rs.500 crore/day losses on petrol, diesel, LPG to shield retail consumers amid West Asia disruption.
- India remains the 4th largest refiner and 5th largest exporter of refined petroleum products; no shortage of fuel.