New Delhi, June 12: The Indian government has introduced new restrictions on the sale of petrol (motor spirit) and high-speed diesel. According to a government notification, retail petrol stations will now be prohibited from selling fuel in bulk. Institutional and commercial consumers must obtain their fuel from designated suppliers or captive pumps.
The government states that this measure aims to prevent the misuse of fuel sold at discounted or retail prices and to curb diversion to unauthorized locations. This order will remain in effect for 90 days, although the government may withdraw or amend it earlier if necessary.
Under the new regulations, petrol pump operators are instructed not to sell more than 200 liters of diesel to any single customer or vehicle in a day. Additionally, reselling diesel purchased from petrol stations is now prohibited. This will enhance monitoring and control over the movement of large quantities of fuel.
The government’s decision aims to ensure that fuel sold at retail petrol stations primarily serves the needs of ordinary consumers. Meanwhile, larger institutions and commercial clients will need to procure their fuel through authorized channels.
This ban could significantly impact consumers who purchase fuel in large quantities. It may also affect the demand and distribution systems of oil marketing companies such as Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, and Indian Oil Corporation Limited. Increased scrutiny on these companies’ retail fuel sales is anticipated.
Following this development, investors are likely to keep a close watch on the shares of oil marketing companies.
This decision comes at a time of significant volatility in global energy markets. India is facing supply pressures due to ongoing geopolitical tensions in the Middle East. In recent weeks, fuel prices in the country have risen multiple times.
In Delhi, petrol prices have increased by approximately ₹4.75 per liter (about 5 percent) since May 15, while diesel prices have risen by ₹4.82 per liter (around 5.49 percent). The primary reason for these increases is the continuous rise in crude oil prices in the international market.
The recent price hikes occurred following conflicts in the Middle East, which have disrupted global maritime trade routes, particularly affecting oil supplies through the Strait of Hormuz. Nearly one-fifth of the world’s oil trade passes through this route. Disruptions in supply have led to increased crude oil prices in the international market.
While most countries have quickly passed the increased costs onto consumers, India has managed to keep domestic fuel prices stable for an extended period. According to government officials, India was the only major economy that did not alter fuel prices for the first 76 days following disruptions in the Hormuz route. Price adjustments began thereafter.
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