Rajasthan High Court admits plea against fuel sale curbs by PSU oil firms
Synopsis
Key Takeaways
The Rajasthan High Court's Jodhpur Bench has admitted a civil writ petition challenging what petrol pump dealers describe as illegal restrictions on the sale of petrol and diesel imposed by three public sector oil companies. The petition, filed by the Petroleum Dealers Distributors Transporters Welfare Association, came up before Justice Mukesh Rajpurohit on 21 May, with the next hearing fixed for 25 May.
What the Petition Alleges
The association has challenged the conduct of Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL). According to the petition, officials of these companies have been directing petrol pump operators — through verbal instructions and WhatsApp messages — to cap sales of petrol and diesel within prescribed limits.
Dealers were reportedly warned that exceeding these limits would invite punitive action, including suspension of fuel supply. The association contends that no formal statutory notification authorising such restrictions has been issued by either the Centre or any state government, rendering the curbs 'illegal and beyond jurisdiction'.
The Legal Argument
Senior advocate Rajesh Joshi and advocate Himanshu Ranjan Singh Bhati, appearing for the association, argued that petroleum products are classified as 'essential commodities' under the Essential Commodities Act, 1955. Under the Act, only the Central or state governments — through formal statutory notifications — hold the legal authority to regulate, restrict, or control the production, distribution, or sale of such commodities.
The court noted that a copy of the petition had already been served upon the Union government. It directed advocate Bharat Vyas to appear on behalf of the Centre, and instructed counsels for the three oil companies to obtain copies of the petition. Advocates Sameer Shrimali and Nishant Boda were directed to be reflected as counsel for the respondents in the cause list.
Parallel Grievances: Weights and Measures Disputes
Running alongside the court proceedings, association president Rajendra Singh Bhati submitted a memorandum to Food and Civil Supplies Minister Sumit Godara, demanding a video conference meeting within three days. The memorandum accused the Department of Weights and Measures of adopting allegedly 'oppressive' practices against pump operators.
The association alleged that dealers are being penalised for minor technical discrepancies in dispensing machines — as small as 25–27 millilitres — without adequate opportunity to present their case. It pointed specifically to action taken on 4 May against M/s Vinayak Indian Oil in Amer tehsil, alleging procedural irregularities and the unilateral imposition of heavy penalties on a woman dealer without a hearing.
A separate incident in Jodhpur was also cited, where a dealer was reportedly portrayed negatively in public despite the pump having been verified by the department just three days earlier. The association argued that since verification and calibration of dispensing machines are carried out by the department itself, dealers cannot be held solely liable for marginal errors.
What Happens Next
The Rajasthan High Court will hear the matter next on 25 May, by which time the Centre and the three oil companies are expected to respond formally. The outcome could have wider implications for how public sector oil companies communicate operational directives to dealers across the country, particularly given the essential-commodity status of fuel.