Petrol-Diesel News: Government's major decision—certain customers barred from buying fuel at petrol pumps; 90-day restriction imposed.

Petrol-Diesel News: Amid tensions in the Middle East, the government has imposed a 90-day ban on industrial, commercial, and institutional users from purchasing petrol and diesel at petrol pumps.

Petrol-Diesel News: Ongoing tensions in the Middle East have intensified discussions surrounding petrol and diesel. If you refuel regularly, this news is relevant to you. The government has prohibited industrial, commercial, and institutional users from buying petrol and diesel at petrol pumps; these users must now purchase their required fuel solely from bulk sale points. Notably, this measure will remain in effect for the next 90 days.

Decision taken following a surge in diesel demand

The government took this step after observing an unusual spike in demand in areas where many bulk users were purchasing fuel from petrol pumps. Large-scale users were turning to retail outlets due to the price disparity. In Delhi, the price of diesel at petrol pumps is ₹95.20 per litre, whereas the bulk sale price is ₹134.50 per liter. Given this significant price gap, purchasing fuel from petrol pumps was proving more cost-effective for bulk users.

Why did the price gap widen?

This price disparity arose because state-owned oil companies kept retail prices in check to provide relief to ordinary consumers. Although fuel costs rose following the Middle East crisis in late February, the full burden was not passed on to the general public. However, the government states that this decision aims to maintain a balanced fuel supply system. On a positive note, this move ensures continued fuel availability for ordinary consumers at petrol pumps and alleviates pressure on the supply chain.