India Limits Retail Fuel Sales to Stave Off Supply Crisis

Starting now, diesel purchases are restricted to 200 liters per customer, with resale strictly prohibited. Commercial entities are now barred from retail outlets entirely, forcing them to source supplies from bulk distributors instead. This government mandate remains in effect for an initial 90-day period, though officials retain the authority to lift the restrictions early if supply lines stabilize.

The pressure on India’s fuel market stems from severe energy flow disruptions. Since conflict broke out in the Middle East, over 40% of the nation’s crude oil imports via the Strait of Hormuz have been jeopardized. This supply crunch, coupled with a weakening rupee and capital flight, has sent wholesale inflation climbing to 8.3% in April. Fuel costs have reacted sharply; gasoline prices jumped 32.4% and diesel rose 25.19% over the same period. In response to the fiscal strain, the government recently abandoned a four-year freeze on fuel pricing, implementing four separate price hikes within a single month to keep pace with global market volatility.