The Centre has officially ordered private fuel retailers Jio-bp and Nayara Energy to immediately roll back their diesel sales caps, with Petroleum Secretary Neeraj Mittal reiterating that supply limits are not permitted. Addressing reporters on Thursday, Mittal stated that "Nobody is allowed to cap fuel sales. It is not acceptable; it is not done," adding that "the government's position had not changed" and that letters have been issued in the past regarding similar restrictions. The secretary emphasized that "there is no change in the government's view on this" and that instructions have been issued to them for restricting fuel sales. Union Petroleum Minister Hardeep Singh Puri confirmed the government is "in touch" with private fuel retailers and has taken a firm stance against the caps. As per Business Standard, the central government will direct private fuel retailers across the country to stop putting a limit on sales of diesel and petrol at retail outlets.
Nayara Energy has denied capping petrol and diesel sales at its retail outlets, stating it was taking measures to ensure adequate fuel availability for customers. The company said it was ensuring fuel availability across its nationwide retail network and is taking appropriate measures to ensure seamless access for customers in line with the current demand patterns. According to Business Standard, "No supply restrictions have been imposed on our dealers across our retail network" and the company remains committed to serving the Indian market and meeting the demand for fuel across the length and breadth of the country. As the country's largest private sector fuel retailer, Nayara Energy's only priority is to ensure optimum supplies to over 7,000 stations and other channels, including bulk customers.
The unusual purchase limits at private fuel retailers are being driven by a price gap of as much as ₹50 per litre between retail diesel and fuel sold to bulk consumers, creating powerful incentives for large users to shift purchases to petrol pumps. According to Business Standard, factories, telecom companies, hotels, hospitals and other bulk users increasingly bought diesel meant for retail customers, with some industrial users purchasing 400 to 600 litres at a time from retail outlets, significantly above typical motorist volumes. This price differential has prompted Jio-bp to cap diesel purchases at 50 litres per customer per day at some outlets, while Nayara Energy stations have limits ranging from 70 to 200 litres. The shift is putting pressure on inventories at individual petrol pumps, which have finite storage capacity and may require at least a couple of days for replenishment through the fuel supply chain.
The West Asia crisis has created significant challenges for oil-marketing companies, with private refiners Reliance Industries and Nayara Energy restricting fuel sales at their retail outlets to limit losses from selling the fuels at below-market rates. According to Business Standard, amid the ongoing West Asia crisis, oil-marketing companies are incurring losses on sales of petrol, diesel, and liquefied petroleum gas (cooking gas) cylinders. Addressing the escalating tensions in the region, Union Minister of Petroleum and Natural Gas Hardeep Singh Puri said the "phase of anxiety" was not over for India. However, Puri added that Indian consumers, however, were insulated from the extraordinary rise in energy prices. As per Business Standard, the West Asia crisis has underscored the importance of increasing the share of natural gas in India's energy basket, as the country cannot be dependent on a single fuel.
Petrol and diesel prices remain largely unchanged across major Indian cities on October 1, 2026, despite elevated crude oil prices and continued Middle East tensions. According to Goodreturns, petrol prices range from ₹102.12 in New Delhi to ₹116.15 in Hyderabad, while diesel prices vary from ₹89.47 in Chandigarh to ₹104.40 in Thiruvananthapuram. In Delhi, petrol is priced at ₹102.12 per litre while diesel stands at ₹95.20 per litre, showing no change from the previous day. Kolkata records the highest petrol price at ₹113.51 per litre and diesel at ₹99.82 per litre, while Mumbai sees petrol at ₹111.21 per litre and diesel at ₹97.83 per litre. The movement of crude oil prices will play a major role in setting the trend of fuel prices ahead, with markets remaining cautious about the durability of any recovery without a lasting agreement to end the Iran war.
