Fuel pumps halt diesel sales in cans over confusing directives & enforcement fears

Pune: Fuel pump operators in Pune on Thursday largely stopped dispensing diesel in cans and other containers to hospitals, schools, banks, housing societies, businesses and farmers, following a series of directives by district authorities and subsequent enforcement of existing petroleum norms, creating confusion among dealers over what constituted a permissible transaction.The move is set to disrupt a key supply channel for generator users and other legitimate consumers.Dealers said they were avoiding such sales due to fear of enforcement action and increasing insistence on using Petroleum and Explosives Safety Organisation (PESO)-approved containers, which were scarce and expensive. “We are giving diesel only to vehicles because there is no clarity on how to identify genuine buyers. If authorities take action later, we will suffers,” a dealer said.An initial order from the district administration cited illegal use and adulteration of petroleum products and warned that global conflicts could impact fuel availability and prices. It called for vigilance squads to curb diversion and ensure smooth supply.A subsequent notice from the district supply office on Thursday flagged bulk sales of fuel to factories and establishments through retail pumps, stating that oil marketing companies (OMCs) had authorised channels for such consumers. It warned that such transactions could lead to shortages for regular retail buyers. It further warned dealers to comply with provisions of the Petroleum Act, Petroleum Rules, Essential Commodities Act and Motor Spirit and High Speed Diesel Control Order.The dealers, however, said the communications did not define what qualified as “bulk sales” or how petrol pumps were expected to distinguish legitimate institutional purchases from suspected diversion. “How do we confirm if someone claiming to represent a hospital or firm is genuine? If diversion is later detected, the pump is held accountable. So, many dealers have stopped can sales altogether,” another dealer said.Several dealers also pointed to stricter verbal instructions regarding PESO norms, effectively requiring diesel for non-vehicle use to be dispensed only in approved containers. “This has created practical difficulties because PESO-approved containers are not readily available in the market. They are significantly more expensive than ordinary cans and barrels traditionally used by farmers, generator operators and institutions,” a fuel pump owner said.“Today a farmer buying 20 litres of diesel cannot be expected to immediately purchase a PESO-approved container costing several thousands of rupees. Such containers are not easily available either,” another dealer said, adding, “We are not giving diesel to banks, schools, hospitals, housing societies or other such commercial establishments even for generator use because nobody is clearly telling us what will be treated as a violation. Dealers are taking the safest route.”Another dealer said representations have been made to authorities seeking exemptions or clarifications for genuine consumers. “Hospitals, banks, schools, housing societies and other such consumers depend on diesel generators. If supplies continue to be restricted, they may face difficulties in this intense summer heat once existing stocks are exhausted,” he said.The district administration, however, denied imposing any blanket ban. A senior official earlier told TOI, “Fuel pumps have only been directed to comply with existing regulations.”Public sector OMCs (IOCL, BPCL and HPCL) also clarified that there was no restriction on diesel sales to non-vehicle users. “Retail outlets can supply diesel for legitimate purposes, including generator use, subject to compliance with safety norms,” a spokesperson said.They said diesel might be dispensed in PESO-approved containers under prescribed conditions and advised institutions with regular demand to use authorised bulk supply channels, including doorstep delivery. OMCs also stressed that there was no shortage of diesel and that supplies remained adequate across the state.