Centre Restricts Bulk Fuel Purchases From Retail Petrol Pumps

In a recent notice, the central government has restricted industrial, commercial, and institutional consumers from purchasing petrol and diesel in bulk from regular retail fuel stations. These stakeholders are asked to obtain their fuel requirements through bulk supply from authorised channels operated by oil marketing companies. The move is aimed at ensuring that retail fuel outlets remain available to individual consumers and light motor vehicle owners.

Why the Government Took This Step

This decision is made following a sharp rise in fuel purchases made by large industrial users from retail petrol pumps. Many businesses have shifted to retail outlets because diesel sold through the bulk channels has become more expensive than diesel available at petrol pumps. The price gap and the burden on such institutions have led to industries bypassing the bulk procurement system and purchasing from the retail stores themselves.

As per a report by NDTV, authorities have observed that these stakeholders have increased their purchases from retail petrol pumps, which has placed pressure on their fuel supplies. In several areas, diesel demands at fuel stations have increased by 20 per cent to 30 per cent. This leads to longer queues and supply disruptions. The government has maintained that there is no nationwide shortage of fuel but acknowledged that bulk buying at retail outlets has affected the distribution patterns.

Bulk Fuel Prices Remain Higher

One of the major concerns for industries is the higher cost of bulk diesel sourcing. Bulk fuel prices can cross retail rates by as much as Rs 20 to Rs 42 per litre. This is due to transportation and other charges that are necessary. Because of this, industries have started purchasing fuel retail stations to reduce expenses.

Centre has emphasised that retail pumps are reserved to serve regular consumers, not industrial and institutional users. They should seek their requirements from designated bulk supply arrangements. The report stated that different retail and bulk fuel channels maintain a balanced and efficient distribution system. This would prevent artificial shortages at petrol pumps.

This direction would increase fuel sourcing costs for industries that depend heavily on diesel for transportation, machinery, generators, and other requirements. Companies may need to adjust how they manage their finances. These changes are expected to affect the manufacturing units, logistics, construction firms, and large institutions.

By asking industrial users to step back from their alternative channels, authorities want to reduce pressure on retail pumps and ensure a smooth supply of fuel for day-to-day users. This would make sure that oil marketing companies can manage their inventories more effectively and maintain a smooth supply.