Kerala Imposes Fuel Purchase Cap - Petrol At Rs 5,000, Diesel At 200 Litres/Per Person

Kerala has become the first state in India to impose limits on how much fuel a customer can purchase at a single visit. Petrol purchases are now capped at Rs 5,000 per person, while diesel purchases are restricted to 200 litres per person.

The purchase limits on Petrol and Diesel in Kerala are expected to affect bulk buyers and logistics operators primarily. Regular individual customers are unlikely to be impacted under normal usage patterns.

Image Used For representational purpose. Source: PTI

The restrictions are part of supply management measures introduced amid concerns over stock availability at retail outlets. State-owned Oil Marketing Companies (OMCs) are currently supplying fuel to pumps on short-term demand cycles, with stations receiving stock sufficient for only a few days at a time. The move to an advanced payment system, replacing the earlier credit-based arrangement, has tightened working conditions further.

Fuel distributors have clarified that no formal nationwide shortage exists. Logistical delays, however, could cause temporary disruptions. The limits are intended to prevent sudden stock depletion during peak hours rather than to reflect any supply crisis.

Representatives from the Kerala State Petroleum Traders Association told Mathrubhumi that the restrictions are designed to ensure continuous availability for vehicle owners and commuters. Kerala operates around 2,500 petrol pumps, each receiving tanker deliveries of 12,000 to 24,000 litres. Urban pumps can sell up to 10,000 litres of diesel per day.

Price Hike - Petrol/Diesel Prices Rise By ₹3.37/lite In Kerala

The central government has confirmed that India holds approximately two months of crude oil and natural gas reserves, with LPG stock sufficient for around one and a half months. The reassurance follows earlier panic buying at pumps in parts of the country, triggered by the transition to advance payments.

Sustained high global crude prices, driven by the West Asia conflict, had made the earlier strategy of offsetting losses unsustainable, with OMCs absorbing estimated losses of Rs 20 per litre on petrol and Rs 100 per litre on diesel.

In response, India's state-owned OMCs today (May 15) hiked fuel prices with prices for petrol and diesel in Kerala rising by ₹3.37 per litre. In Thiruvananthapuram, petrol now costs ₹110.75 per litre and diesel ₹99.63 per litre.