Andhra Pradesh bans sale of bulk fuel at 4,500 outlets, closes 200 liter tanks

A petrol station employee checks the revised price of petrol at a vending machine at a petrol tank after the latest fuel price hike in Visakhapatnam. File | Photo credit: V. Raju

Citing fuel supply austerity measures due to the ongoing crisis in West Asia, Andhra Pradesh’s civil supplies department earlier this month issued strict new rules for around 4,500 petrol and diesel fuel outlets across the state.

In an official order dated May 4, 2026, Commissioner of Civil Supplies K. Kanna Babu directed all district collectors to ensure that petrol pumps fill fuel only in vehicle tanks.

As per condition 16(4) of Form XIV of the Petroleum Rules 2002 and the guidelines issued by the Petroleum and Explosives Safety Organization (PESO), petroleum products are allowed to be dispensed at retail outlets (RO) only in vehicle fuel tanks or approved containers, subject to a maximum limit of 200 litres.

The order further clarified that retail outlets are not licensed for bulk catering operations. Bulk supplies of fuel are to be made only through well-established direct selling mechanisms designed to cater to bulk buyers. Any diversion of bulk fuel to retail outlets violates statutory provisions and raises serious safety, licensing and operational concerns.

However, the order stated that the supply of diesel for agricultural and aquaculture operations would be ensured in a seamless manner based on actual requirements and subject to verification by the concerned authorities.

Speaking to The Hindu, Mr. Babu confirmed that the orders have been issued and their violation will attract action under the Essential Commodities Act, 1955 and other applicable laws.

Meanwhile, the AP Federation of Petroleum Traders welcomed the move but offered an alternative proposal. Instead of limiting the sale of fuel, the federation proposed limiting the hours of operation of gasoline and diesel fuel throughout the state.

Federation president Raavi Gopala Krishna suggested that shops for the general public should open at 6 am and close at 10 pm. He said keeping retail stores open late into the night or 24/7 runs counter to energy efficiency goals.

On the other hand, the Consortium of Indian Petroleum Dealers (CIPD) blamed institutional buying of high-speed diesel for causing long queues and chaos at retail outlets.

Oil Marketing Companies (OMCs) in Andhra Pradesh on Monday (May 18, 2026) said the availability of petrol and diesel is sufficient to meet the current demand and there is no shortage of these products anywhere in the state. The state coordinator for open methods of coordination said that the open methods of coordination of the public sector are closely monitoring the supply situation and taking steps to streamline logistics and speed up deliveries. During the first fortnight of this month, OMCs saw petrol deliveries grow by 8.9% and diesel deliveries by 15.3%.

The OMCs also said that domestic supply of LPG was normal in Andhra Pradesh and that 32.90 lakh cylinders were supplied this month.

Published – 19 May 2026 13:32 IST