#IndiaRestrictsDieselSales90DaysMiddleEastConflict
The Indian government has temporarily restricted commercial and institutional users from buying subsidized diesel and petrol at retail fuel stations. Effective for an initial period of up to 90 days, outlets are now capped at dispensing a maximum of 200 litres of High-Speed Diesel (HSD) per vehicle/customer per day to ensure availability for individual consumers amid Middle East supply disruptions.
Why the Restriction is Happening
Middle East Tensions: The ongoing conflict and tensions in the Gulf have heavily strained global petroleum supply chains and shipping routes through critical chokepoints like the Strait of Hormuz.
Price Arbitrage & Hoarding: Institutional and commercial buyers (like transport and logistics fleets) were aggressively purchasing fuel at retail pumps because state-run retail prices were kept lower than bulk supply depots, causing local inventory shortages.
Energy Security: The government issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, under the Essential Commodities Act to maintain equitable, uninterrupted supply across the country.