The Indian government has issued a temporary order to prevent black marketing and hoarding of diesel. The new rules will remain in force for up to 90 days and are aimed at ensuring diesel remains available for regular retail customers.
The move comes after a sharp rise in diesel demand at PSU fuel stations. In May 2026, diesel sales at PSU retail outlets increased by more than 10% in 327 districts, while 80 districts recorded growth above 30%.
According to the government, many industrial, commercial and institutional users have been buying diesel from retail pumps because retail diesel is around Rs 40 per litre cheaper than bulk diesel. Private fuel retailers also saw HSD sales fall about 58% in May due to higher prices.
Under the new rules, diesel can only be filled into vehicle tanks or PESO approved containers. A customer or vehicle can buy a maximum of 200 litres of diesel per day from a retail outlet, and diesel purchased from retail pumps cannot be resold.
Industrial, commercial and institutional consumers have been barred from buying diesel at retail pumps and must use dedicated consumer pumps for their fuel needs. Oil companies and petrol pump dealers have been directed to strictly enforce these restrictions.
The government said there is no fuel shortage in India and this is not a rationing measure. Authorities warned that violations may attract legal action under the Essential Commodities Act, while states and UTs have been asked to crack down on black marketing and unauthorized diversion of diesel.
BBW News Desk is the editorial team of BigBreakingWire, a digital newsroom focused on global finance, markets, geopolitics, trade policy, and macroeconomic developments.
Our editors monitor government decisions, central bank actions, international trade movements, corporate activity, and economic indicators to deliver fast, fact-based reporting for investors, professionals, and informed readers.
The BBW News Desk operates under the editorial standards of BigBreakingWire, prioritizing accuracy, verified information, and timely updates on major global developments.
