India has barred commercial fuel buyers from purchasing petrol and diesel from retail stations and capped daily diesel purchases to prevent local shortages amid disruptions to global supply chains due to the Iran-US war.
According to a government order, fuel station operators have been instructed not to sell more than 200 litres of diesel to any customer or vehicle in a single day.
The order also prohibits the resale of fuel purchased from retail outlets.
The government officials said the measures were necessary to ensure the equitable distribution of petrol and diesel, discourage hoarding and diversion of supplies, and maintain uninterrupted fuel availability at affordable prices across the country.
The restrictions primarily target large commercial consumers, including trucking and logistics companies, which have increasingly been purchasing diesel from retail stations operated by state-owned oil firms because prices there are significantly lower than those charged at bulk supply depots.
According to the government, diesel sold to industrial and bulk users is priced roughly 40 Indian rupees per litre higher than fuel sold through retail pumps. This price gap has encouraged commercial buyers to shift purchases to retail outlets, creating supply pressures and shortages in some regions.
Official figures show that diesel sales by private fuel retailers, which generally charge market-linked rates, fell by 58% last month. In contrast, sales at state-run fuel stations surged sharply, with some areas reporting increases of more than 30%.
"The measures are aimed at large or bulk consumers who should not be procuring diesel from retail outlets to take undue advantage of the price difference," the government said in the order.
Although India remains a net exporter of refined petroleum products, rising domestic sales at lower retail prices have increased financial pressure on state-owned fuel retailers, including Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. Together, the three companies operate nearly 90% of India's more than 100,000 fuel stations.
The government also cited geopolitical tensions linked to the conflict involving Iran, saying the crisis has strained global petroleum supply chains, shipping routes and fuel availability, making prudent fuel management and conservation necessary.
The restrictions will remain in force for an initial period of up to 90 days unless withdrawn earlier, authorities said, as India seeks to safeguard domestic fuel supplies against ongoing uncertainty in international energy markets.