GoI moves to curb fuel hoarding, restricts bulk purchase of petrol, diesel

New Delhi: The government of India has moved to regulate the sale of petrol and diesel through retail outlets after detecting what it described as an abnormal increase in fuel purchases in certain parts of the country, raising concerns over hoarding and supply disruptions.

In a notification, the Ministry of Petroleum and Natural Gas invoked provisions of the Essential Commodities Act to introduce temporary restrictions on the procurement of Motor Spirit (petrol) and High-Speed Diesel through retail outlets.

The notification said the government observed unusually high fuel purchases in some regions, driven by a widening gap between retail and bulk sale prices. Authorities warned that such procurement could divert supplies intended for ordinary consumers and create artificial shortages.

The order also noted that bulk purchases from retail fuel stations have the potential to adversely affect the availability of petrol and diesel meant for bona fide consumers and may contribute to hoarding, black marketing and other malpractices.

The government said the measure was necessary to ensure equitable distribution of petroleum products, maintain uninterrupted supplies and safeguard public interest.

The notification comes even as the Petroleum Ministry has sought to reassure consumers that crude oil, petrol, diesel, LPG and natural gas supplies remain stable and that refineries across the country continue to operate at optimal capacity. [KNT]