Government notifies order to curb diesel hoarding at retail outlets, with a 200-litre cap
On 12 June 2026, the Petroleum Ministry announced that it has notified the Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, to curb black marketing and hoarding of diesel.
Summary
The Ministry of Petroleum and Natural Gas notified the 'Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026', announced on 12 June 2026, to curb black marketing and hoarding of diesel. Bulk industrial and institutional buyers had shifted purchases from their own consumer pumps to PSU retail outlets because of the gap between bulk and retail diesel prices. In May 2026, 327 districts recorded more than 10% growth in diesel sales at PSU OMC retail outlets over a year earlier, and 80 districts saw growth above 30%. The order includes a 200-litre cap, which the ministry says is far above any private vehicle's need, and targets bulk buyers exploiting the price arbitrage.
Key facts
- Order
- Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026
- Aim
- Curb black marketing and hoarding of diesel
- Cap
- 200 litres
- Trigger
- May 2026: 327 districts >10% and 80 districts >30% growth in retail diesel sales
- Target
- Bulk buyers exploiting bulk–retail price gap
Practice MCQs 3 questions
What cap is included in the diesel retail supply order notified by the Petroleum Ministry on 12 June 2026, which the ministry said is far above a private vehicle's need?
Show answer
Correct answer: B — 200 litres
The order includes a 200-litre cap aimed at bulk buyers, not ordinary motorists.
According to the Petroleum Ministry, in how many districts did diesel sales at PSU OMC retail outlets grow by more than 10% in May 2026 over May 2025?
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Correct answer: D — 327
327 districts recorded more than 10% growth, and 80 districts saw growth above 30%.
What was the main reason given by the Petroleum Ministry for bulk diesel buyers shifting to PSU retail outlets in 2026?
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Correct answer: C — Difference between bulk and retail diesel prices
Industrial and institutional consumers shifted to retail outlets because of the difference between bulk and retail diesel prices.