NEW DELHI: The Centre’s decision to restrict diesel sales at retail fuel stations and cap purchases at 200 litres per customer or vehicle per day may create challenges for farmers during the ongoing kharif season, especially in regions dependent on irrigation pumps and farm machinery.
Industrial, commercial and institutional users have been barred from buying petrol and diesel at retail pumps and have been directed to procure fuel through bulk channels. Simultaneously, retail diesel sales have been restricted to vehicle fuel tanks or containers approved by the Petroleum and Explosives Safety Organisation (PESO), with a daily purchase limit of 200 litres.
These norms are aimed at curbing hoarding and black-marketing of diesel. They are temporary, initially valid for up to 90 days, ensuring diesel availability for all retail consumers, the petroleum ministry said in a statement on Friday.
However, the move, introduced amid global supply disruptions linked to geopolitical tensions, may inadvertently affect farmers and cooperatives that collectively buy and store diesel for sowing during the ongoing peak agricultural activity. Farmers and farm organizations fear the cap could force repeated trips to fuel stations, increasing transportation costs and delays, especially in rural areas where pumps are located far from villages.
"The diesel cap is likely to raise input costs for farmers, as they may be forced to make repeated trips to fuel stations to refill tanks during peak agricultural operations. We intend to take up the matter at the All-India Farmers Organisation meeting scheduled for 17 June,” said Joginder Singh Ugrahan, president of the Bhartiya Kissan Union (Ekta Ugrahan), an organization with 200,000 farmer-members across Punjab, Haryana, Uttarakhand and Uttar Pradesh.
Many medium and large farmers purchase diesel in bulk to run their pump sets and tractors during sowing and transplanting. The agriculture sector accounts for two-fifths of India's annual diesel demand of about 92 million tonnes.
Unnecessary confusion
“The restriction is likely to create unnecessary confusion during the peak sowing season. Diesel sales at fuel stations in rural areas typically rise four to five times during the kharif and rabi months. The curbs could inconvenience farmers,” said Monty Sehgal, spokesperson of the Petrol Pump Dealers Association Punjab, representing 4,000 pumps in the state. It could also affect dealers, he added.
The government maintains that fuel stocks are adequate and the measures are temporary safeguards against diversion and local shortages. However, farmer groups are likely to seek exemptions or relaxed norms as sowing gathers pace.
Dealers have sought clarity on mandating diesel sales through vehicle fuel tanks or containers approved by PESO. They said ambiguity over compliance could create confusion at retail outlets, particularly in rural areas.
"Among the key concerns raised by us are the exact specifications of a PESO-approved container and whether an official list of approved containers or manufacturers will be circulated to dealers. We have also questioned how dispensing attendants are expected to identify an approved container at the point of sale, especially when customers arrive with unmarked cans or storage vessels,” said Hemant Sirohi, a dealer in Meerut and a member of the Empowering Petroleum Dealers Foundation, an association of over 1,000 dealers.
Dealers want clarity on documentation requirements, including whether customers must carry a PESO approval certificate, manufacturer approval number or any supporting proof to establish compliance. Uncertainty persists over the course of action to be taken if a container appears compliant, but the customer is unable to furnish supporting documents, raising concerns over disputes at fuel stations and delays in diesel dispensing.
Dealers have urged the government to issue practical implementation guidelines on the new restrictions, warning that any ambiguity could disrupt supplies for genuine consumers.
No clear definitions
It’s not clear whether the 200-litre cap applies per vehicle, per customer, per transaction or per retail outlet a day. They said the absence of clear operational definitions could result in inconsistent implementation across fuel stations.
Pump operators want to know how to monitor cumulative diesel purchases if customers procure fuel from multiple outlets and whether oil marketing companies will introduce a centralized software or monitoring mechanism to track purchases and ensure compliance.
Further, dealers have asked the government to clarify the treatment of genuine bulk users, including farmers dependent on diesel-powered irrigation, diesel generator set operators, telecom infrastructure providers, construction equipment operators and other essential service providers, who may face operational disruptions due to the restrictions despite legitimate fuel requirements.
The directive comes after a surge in bulk purchases at retail pumps, leading to shortages at these fuel stations. The ministry has in the past couple of months advised bulk buyers to avoid purchases at retail outlets.