Commercial fuel buyers are now barred from purchasing gasoline and diesel from retail stations and daily diesel purchases are capped to prevent local shortages amid disruptions to global supply chains due to the Middle East conflict.
Retail fuel station dealers have been directed to sell no more than 200 litres of diesel per customer or vehicle a day, according to a government order issued late on Thursday, which added that buyers cannot resell the fuel.
Commercial users have been buying diesel from retail outlets of state-run companies, where prices are lower than at bulk supply points, leading to shortages at pumps in some areas.
The government said restrictions were needed to ensure equitable availability of petrol and diesel, prevent diversion and hoarding, and maintain uninterrupted fuel supplies at fair prices.
Diesel, which accounts for about 40% of India’s fuel demand, is sold at market rates to industrial users at about 40 rupees (RM1.70) per litre more than retail prices, the government said.
Diesel sales by private retailers, which price fuel closer to market rates, fell 58% last month, while those of state-run companies surged, with some areas seeing increases of more than 30%, the government said.
“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,” it said.
According to the order, the measures will remain in force for an initial period of up to 90 days unless revoked earlier. — Reuters
