Government Warns Industries Against Buying Diesel from Retail Outlets, Cites Artificial Shortage Risks

NEW DELHI: The Indian government has issued a stern warning to industrial consumers buying diesel from retail outlets, citing concerns over differential pricing and the creation of artificial fuel shortages in various parts of the country. In a statement released on Wednesday, the government emphasized that there are “more than adequate” supplies of both petrol and diesel to meet current demand. However, it noted that industrial consumers are diverting their bulk purchases to retail pumps, leading to localized shortages that disproportionately affect ordinary citizens.

The government has urged industry associations to sensitize bulk consumers about the consequences of such violations, which include legal action under relevant provisions of the Essential Commodities Act and control orders. Additionally, states and Union Territories have been directed to form special squads to take strict action against bulk consumers purchasing diesel from retail outlets, as well as hoarders and black marketeers. This move comes after repeated reports of shortages at retail fuel stations across the country, prompting an assessment by the Ministry of Petroleum and oil marketing companies. The assessment confirmed that bulk consumers are indeed making purchases from retail outlets, contributing to the problem.