The government has decided on a policy move that industrial and commercial consumers will not be allowed to buy petrol and diesel from retailers. The directive, aimed at streamlining the distribution of fuel to the bulk market (and the general consumer) and the necessity of price parity, will change the way bulk buyers can buy petroleum products.
The decision was made to prevent retail fuel stations from being used for large‑scale procurement by industries and commercial establishments that would lead to supply shortages and logistics problems, officials said. By only selling fuel to consumers at home and small companies, the government is committed to making fuel pumps more convenient and not as congested.
Industrial and commercial consumers (factories, transport companies, and large institutions, etc.) will have to buy their fuel directly from OMCs (oil marketing companies) through bulk supply arrangements. This is expected to foster transparency, better monitoring of consumption and to prevent the use of subsidized/discounted fuel meant for retail customers.
It comes as the government grapples with higher energy prices and subsidies. When the bulk of industrial demand is channeled through bulk supply chains, authorities are confident that they can better control price, allocation and subsidy distribution in line with the industry, and this could also help curb the diversion of fuel and to comply with environmental and taxation requirements, they say.
It will be a benefit for consumers, and it will reduce pressure on retail outlets but industry representatives have expressed concern about logistical delays and higher costs associated with bulk procurement. Transport operators, in particular, may struggle to adapt to the new system (OMCs have said they will enhance their infrastructure to meet demand).
The government has stressed that this measure is part of a broader effort to rationalize fuel distribution and promote energy efficiency. By separating retail and industrial supply chains, policymakers hope to create a more balanced system that prioritizes household needs while ensuring industries receive fuel through structured channels.
At the end of the day, the government’s decision to prohibit industrial and commercial consumers from purchasing petrol and diesel at retail outlets is a major policy change. It aims to protect retail availability (as well as improve transparency) but bulk supply systems will need to scale up to satisfy industrial demand.
