Govt limits diesel sales to 200 litres per vehicle in a day

• The Ministry of Petroleum and Natural Gas notified the ‘Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026’ to curb black marketing and hoarding of diesel by unscrupulous elements.

• The government has capped diesel sales to a vehicle in a day at 200 litres.

• Retail outlets can sell diesel only into a vehicle tank or PESO-approved container.

• It has also restricted industrial, commercial, and institutional users from buying petrol and diesel from petrol pumps in a bid to prevent local shortages amid global supply disruption.

• These regulations are temporary measures, initially valid for up to 90 days, ensuring diesel availability to all retail consumers.

• State governments and Union Territory administrations have been directed to take necessary actions against any malpractices, such as black marketing or unauthorized diversion, to ensure the interests of the common man are protected.

• Violations of the order will be subject to penalties and other legal action as provided under the Essential Commodities Act, 1955 and applicable laws.

Why govt notified this order?

• The current situation is one of uneven extraordinary demand growth in some retail outlets due to shifting of bulk diesel volume to PSU oil marketing retail outlets. 

• This is driven by industrial and direct or institutional and commercial consumers who have been shifting their procurement from their dedicated consumer pumps to retail outlets due to the difference between bulk and retail diesel prices. 

• The data for the month of May 2026, as compared to the corresponding period in 2025, revealed a significant surge in diesel sales through PSU Oil Marketing Companies (OMCs) retail outlets wherein 327 districts recorded more than 10 per cent growth, with 80 districts seeing a growth exceeding 30 per cent.

• The new regulatory measures are specifically designed to protect retail consumers from inconvenience caused by intermittent supply issues at retail outlets. 

• These measures will not affect citizens in any way given the fact that for the average person driving a car or riding a two-wheeler, the 200-litre cap is far beyond what any private vehicle would need.

• The measures are aimed at large/bulk consumers who should not be procuring diesel from retail outlets to take undue advantage of the price arbitrage. 

• Blatant instances of procurement of large quantities of diesel in jerry cans, and its resale have come to the notice of the government. 

• This order will enable strict action against such buyers/operators, dealers and officers who are involved in black marketing and hoarding of diesel.