PETROL-DIESEL: Tensions have once again escalated in the Middle East due to the conflict between the US and Iran, and the situation continues to deteriorate. Iran has announced plans to completely close the Strait of Hormuz again. Meanwhile, the government has taken a significant step to ensure the continued normal supply of petrol and diesel.
The government has tightened regulations regarding the purchase of large quantities of industrial-grade petrol and diesel from the country’s petrol pumps. According to a government order, industrial, commercial, and institutional users are prohibited from purchasing petrol and diesel at petrol pumps and have been directed to source their requirements from bulk sale points instead.
Ban to remain in effect for three months.
These restrictions imposed by the central government on bulk purchases of petrol and diesel from petrol pumps will remain in force for 90 days. According to a PTI report, this move follows an unusual spike in diesel demand in certain areas, as bulk users began purchasing fuel from petrol pumps to take advantage of price disparities.
This price gap arose because state-owned oil companies kept retail prices in check to shield ordinary consumers from the cost increases triggered by the Middle East crisis in late February. While bulk users—such as industries utilising diesel for telecom towers, power generation, and other needs—are charged market rates, retail pump prices remain significantly lower than actual costs.
Why did the government take this decision?
It is worth noting that the Ministry of Petroleum and Natural Gas issued the ‘Motor Spirit and High-Speed Diesel Order, 2026’ on June 11. This order directs petrol-diesel retailers and Oil Marketing Companies (OMCs) to halt bulk purchases at retail outlets for a period of 90 days. The Central Government stated that this step became necessary due to the prevailing geopolitical situation affecting certain parts of the world.
This situation severely impacted global oil supply chains, shipping logistics, and the availability of petroleum products. According to the government, bulk purchases through retail stations could divert supplies intended for ordinary consumers elsewhere, potentially leading to local shortages.
