Mumbai Retail Diesel Sales Restricted to 200 Litres Per Vehicle Daily

In Mumbai, the government has restricted the sale of diesel at retail fuel stations to a maximum of 200 litres per vehicle, per customer, per day. The directive, aimed at curbing fuel hoarding and preventing the diversion of retail supplies by industrial buyers, restricts sales strictly to vehicle tanks or containers approved by the Petroleum and Explosives Safety Organisation (PESO).

The decision follows the Union petroleum ministry's notification of the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026. This order establishes a legal framework to regulate fuel procurement and prohibits the resale of retail diesel.

According to the directive, institutional, industrial, and commercial customers must use bulk channels rather than purchasing from retail outlets. Currently, bulk diesel is priced Rs 35 to Rs 40 per litre higher than retail diesel, which has driven commercial buyers to retail pumps.

A Maharashtra Government Resolution stated that "geopolitical developments" have affected the supply of petroleum products. The state government previously issued a circular on June 5 to curb large-scale diesel purchases by industrial customers at retail pumps in several districts. The resolution noted that the measures aim to tackle hoarding, black marketing, unauthorized filling of tankers, fuel adulteration, and overcharging.

However, the transport sector has expressed concern over the daily limit. Bal Malkit Singh of the All India Motor Transport Congress stated that long-haul commercial vehicles often have fuel capacities exceeding 200 litres. He noted that some heavy vehicles require 300 litres or more when refuelling.

Singh warned that the restriction could impact fleet efficiency, vehicle turnaround times, and supply chain performance. He urged the government and oil marketing companies to provide operational guidelines and exemptions for commercial vehicles transporting goods, essential commodities, and export-import logistics.