Ban on buying diesel and petrol in bulk from petrol pumps, big decision of the government, ban imposed for 90 days

New Delhi, June 12. The Government of India has imposed new restrictions on the sale of petrol (motor spirit) and high-speed diesel. According to the government notification, now there will be a ban on purchasing fuel in large quantities from retail petrol pumps and institutional and commercial consumers will have to take the fuel required from their designated consumer or captive pumps only. The government says that this step has been taken to prevent misuse and diversion of fuel available at subsidized or retail prices.

This order will remain in force for 90 days at present, although if the government wishes, it can withdraw it earlier or make changes in it. Under the new rules, petrol pump operators have been instructed not to sell more than 200 liters of diesel in a day to any one customer or vehicle. Apart from this, resale of diesel purchased from petrol pumps has also been banned. This will make monitoring of movement of large quantities of fuel more strict. The government said that the objective of this decision is to ensure that the fuel sold at retail petrol pumps is mainly used by common consumers.

At the same time, big institutions and commercial customers will have to purchase the fuel required through authorized channels. This ban may impact consumers purchasing fuel in large quantities. Additionally, this may also impact the demand and distribution arrangements of oil marketing companies such as Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Indian Oil Corporation Limited. There is a possibility of increased monitoring of retail fuel sales of these companies.

After this development, investors may also keep an eye on the shares of oil marketing companies. This decision has come at a time when there is huge volatility in global energy markets. India is also facing supply pressures due to ongoing geopolitical tensions in the Middle East. Fuel prices have been increased several times in the country in the last few weeks. In Delhi, since May 15, the price of petrol has increased by about Rs 4.75 per liter (about 5 percent), while the price of diesel has increased by Rs 4.82 per liter (about 5.49 percent). The main reason for this is said to be the continuous increase in the prices of crude oil in the international market.

The recent price increase follows the ongoing conflict in the Middle East, which has affected global maritime trade routes. Especially the oil supply through the Strait of Hormuz has been affected. About one-fifth of the world’s oil trade passes through this route. Due to supply disruption, crude oil prices have increased in the international market. While most countries quickly passed on the increased costs to consumers, India kept domestic fuel prices stable for a long time. According to government officials, India was the only country among major economies to keep fuel prices unchanged for the first 76 days after the disruption in the Strait of Hormuz began. After this the price revision started.