Diesel Supply Curbs Hit Transporters and Fuel Dealers

Restrictions on diesel supply in recent weeks are beginning to affect transport operators and fuel stations, with authorities capping retail sales at 200 litres per vehicle and reducing allocations to fuel outlets.

According to industry sources, the measures have been introduced to prevent the diversion of retail diesel to industrial consumers. While diesel sold at fuel stations is priced at around ₹105 per litre, industrial diesel has reportedly risen to nearly ₹160 per litre.

Officials have directed fuel stations not to dispense more than 200 litres to a vehicle in a single transaction, a move aimed at preventing the diversion of lower-priced retail fuel to industrial users and curbing unauthorised sales, dealers said.

Fuel station operators have also reported a reduction in diesel allocations. Outlets that received 30,000 litres a day are now being supplied around 27,000 litres, reflecting a 10% cut. Authorities are also said to be closely monitoring daily sales and stock levels.

The restrictions are expected to affect long-distance freight transport operations. Truck operators said heavy vehicles undertaking long journeys typically tank up fully before departure to avoid multiple refuelling stops. According to operators, a truck covering around 1,500 km typically consumes nearly 500 litres of diesel.

With the sales cap in place, transporters may have to refuel at multiple locations during transit, potentially increasing travel time and operational costs. Drivers would need to plan stops at multiple fuel stations, adding logistical complexity to long-haul trips.

Visakhapatnam has traditionally been a preferred refuelling destination for goods carriers from various parts of the country because of lower diesel prices in the region. Transporters said the latest restrictions would limit that advantage.

Fuel station dealers, meanwhile, expressed concern over declining sales and increased regulatory scrutiny. They said the restrictions had made it difficult to meet customer demand even as they complied with the new guidelines.