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India restricts sale of high-speed diesel and motor spirit at retail outlets

India has restricted institutional and commercial customers from buying motor spirit and high-speed diesel at retail fuel outlets, according to a notification issued on Thursday. Instead, such buyers have been directed to meet their fuel needs through their own consumer pumps.

The new rules take effect immediately and will remain in place for an initial period of up to 90 days unless revoked by another order, the notification said. The move appears aimed at tightening control over bulk fuel purchases at public retail outlets and ensuring that commercial users source fuel through dedicated channels.

Under the order, retail outlet dealers have also been told not to sell more than 200 litres of high-speed diesel to any customer or vehicle in a single day. In addition, the diesel purchased under this rule cannot be resold. The notification did not specify penalties for violations, but the restrictions are binding on dealers and customers covered by the directive.

Motor spirit generally refers to petrol, while high-speed diesel is the fuel used widely by vehicles and machinery across the transport and industrial sectors. By limiting access at retail pumps, the government is separating ordinary consumer fuel sales from institutional and commercial demand.

The notification applies only to institutional and commercial customers, not to regular retail consumers, according to the Reuters report. It was not immediately clear whether the measure was introduced because of supply concerns, price-related issues or to prevent diversion of fuel purchased in large quantities.

Fuel distribution in India is closely regulated, and retail outlets often serve a broad mix of private motorists, businesses and fleet operators. The latest order adds a new layer of restriction for non-household buyers and may affect companies that rely on retail stations for routine refueling.

The directive could have implications for logistics firms, transport operators and other commercial users that previously bought fuel at standard outlets. Such customers may now need to adjust procurement practices and rely more on their own storage and dispensing infrastructure.

The Reuters report did not mention any broader changes to fuel pricing, taxes or national supply policy. It also did not indicate whether the restriction is part of a temporary administrative measure or connected to a longer-term regulatory shift.

For now, the order is set to stay in force for up to three months unless the authorities issue a separate revocation. Dealers at retail outlets have been instructed to comply with the new limits immediately.

Harish Yadav

Editor at PPC Herald, handles news and article writing and proofreading.

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