Industrial units across Punjab and the adjoining state of Himachal have raised concerns over the Union Government’s recent restrictions on bulk procurement of diesel and petrol from retail fuel outlets, claiming that the new regulations are disrupting operations and increasing costs for businesses dependent on diesel-powered machinery and generators.
A major grievance voiced by industrialists relates to the requirement that diesel can now be dispensed only into vehicle tanks or Petroleum and Explosives Safety Organisation (PESO)-approved containers. An industrialist, CS Kapoor, alleged that such approved containers are either unavailable in the market or available only in limited numbers and at substantially higher prices. While the government had mandated the use of these containers, no parallel mechanism was created to ensure their availability, leaving genuine consumers struggling to comply with the rules, he said.
The concerns have surfaced following a notification issued by the Ministry of Petroleum and Natural Gas on June 11. The order empowers oil marketing companies to prohibit industrial, commercial and institutional consumers from purchasing petrol or diesel from retail outlets and directs them to source their requirements only through dedicated consumer pumps. It further restricts retail fuel stations from selling more than 200 litres of diesel per day to a customer or vehicle. The provisions can remain in force for an initial period of up to 90 days.
According to the notification, the Centre introduced the restrictions after observing an abnormal increase in diesel and petrol sales through retail outlets in certain parts of the country. The government stated that industrial and commercial consumers were increasingly shifting from bulk purchase channels to retail outlets because of the price difference between bulk and retail supplies. This, it argued, was resulting in diversion of fuel meant for ordinary consumers and creating the possibility of local shortages and disruption of essential services.
Industrialists in border areas of Punjab and Himachal, however, say the order overlooks the practical realities faced by thousands of small and medium enterprises. Many units, contractors, brick kilns, mining operators and infrastructure companies do not possess dedicated consumer pumps and have traditionally sourced diesel from nearby fuel stations for use in generators, excavators, compressors and other equipment operating at multiple locations, said Anuj Thakur, an industrialist from Nangal town of Ropar.
Representatives of several industrial associations argue that setting up dedicated consumer pumps requires substantial investment, regulatory approvals and land availability, making the option unviable for smaller enterprises. They maintain that the restrictions have effectively cut off a critical fuel supply channel without providing an alternative arrangement.
Construction contractors have also expressed concern over the daily cap of 200 litres and the restrictions on container-based procurement.
Industrialist associations of the region have urged the Centre to either exempt small and medium industrial consumers from the restrictions or provide a transition period until approved containers become readily available in the market.
The government notification authorises state governments and Union Territory administrations to take action against hoarding, black marketing, unauthorised procurement and diversion of fuel under the Essential Commodities Act and other applicable laws. Violations of the order can attract penal action.
While industrial associations said that with the restrictions expected to remain in force for up to 90 days initially, businesses fear prolonged disruption unless practical solutions are worked out to ensure uninterrupted fuel supplies for legitimate industrial users.
