India caps retail diesel at 200L, bans bulk purchases

The Indian government has imposed temporary restrictions on fuel sales at retail outlets, barring commercial and industrial consumers from purchasing petrol and diesel at service stations and capping daily diesel sales to 200 liters per customer. The order, issued by the Ministry of Petroleum and Natural Gas on June 11, 2026, is effective immediately and can remain in force for up to 90 days.

The move aims to redirect bulk buyers back to their designated supply channels, addressing what officials described as "abnormal" spikes in retail sales. A significant price gap has incentivized this shift; in Delhi, for example, diesel at retail pumps costs approximately 95.20 rupees per liter, while bulk buyers are charged nearly 134.50 rupees per liter. State-run oil marketing companies have held retail prices steady to shield households from global price increases, while bulk customers pay market-linked rates.

The government stated the restrictions are necessary to ensure equitable fuel availability across the country, prevent hoarding and diversion, and maintain uninterrupted supplies at fair prices for the general public. Officials warned that continued bulk purchasing at retail...