Control Order on Diesel Black Marketing

Why in News?

Recently, The Ministry of Petroleum and Natural Gas has notified the Motor Spirit and High‑Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026.

• Aim – To curb black marketing and hoarding of diesel and to protect retail consumers during extraordinary demand shifts caused by price differences between bulk and retail diesel.
• Validity of the order – 90 days.

Key Provisions of the Order

• Retail Limit – Diesel dispensed only into vehicle tanks or PESO‑approved containers, capped at 200 litres per day per customer/vehicle.
• Restriction – Industrial, institutional, and commercial bulk consumers prohibited from sourcing diesel at retail outlets; must procure via consumer pumps.
• Compliance –
  • Oil Marketing Companies (OMC),
  • IOCL (Indian Oil Corporation Limited),
  • BPCL (Bharat Petroleum Corporation Limited),
  • HPCL (Hindustan Petroleum Corporation Limited), and
  • Dealers responsible for enforcement are punishable under the Essential Commodities Act, 1955 if violated.
• Extraordinary Demand – Bulk consumers shifted procurement to retail outlets due to Rs.40/litre price gap between bulk and retail diesel.
• Impact – Public Sector Undertaking (PSU) OMCs recorded 10% growth in diesel sales across 327 districts in May 2026; 80 districts saw 30% growth.
• Consumer Protection – PSU OMCs absorbing Rs.500 crore/day losses on petrol, diesel, LPG to shield retail consumers amid West Asia disruption.
• Energy Security – India remains the 4^th largest refiner and 5^th largest exporter of refined petroleum products; no shortage of fuel.

Reference

PIB | Control Order