Overview
- The Ministry of Petroleum issued the Motor Spirit and High-Speed Diesel Order on Thursday, June 11, directing oil retailers to restrict bulk and institutional purchases from retail pumps for an initial period of up to 90 days.
- Under the order retail diesel may be dispensed only into vehicle tanks or PESO-approved containers and is capped at 200 litres per customer or vehicle per day, with resale explicitly prohibited.
- Public-sector oil marketing companies and authorised dealers have been empowered to enforce the limits while state governments must act against hoarding and black marketing, and violations will be punishable under the Essential Commodities Act.
- Hospitals, data centres, telecom sites and other users that rely on retail-sourced diesel have warned of operational risks and are seeking exemptions or clarifications as state OMCs report bearing large daily losses of around ₹500 crore to shield consumers.
- The move responds to a West Asia supply shock that widened the retail–bulk price gap (reported about ₹95.20 per litre at pumps versus ₹134.50 per litre for bulk in Delhi) and could be extended or adjusted by the government depending on supply and enforcement outcomes.