Government Withdraws Temporary Restrictions on Petrol and Diesel Sale from July 1

The Government of India has withdrawn the temporary regulatory restrictions placed on the sale and distribution of petrol and diesel through retail outlets of Public Sector Oil Marketing Companies. The withdrawal will come into effect from 1 July 2026, following a review of the national petroleum supply situation.

The temporary measures were introduced on 12 June 2026 during the disruption caused by the West Asia crisis. At that time, international fuel prices had risen sharply, while the Government continued to protect retail consumers by keeping petrol and diesel prices stable. This created a wide difference between retail fuel prices and the rates applicable to bulk consumers.

As a result, several industrial, commercial and institutional consumers began purchasing diesel and petrol from regular retail outlets instead of designated bulk supply channels. This led to concerns over diversion, hoarding and black marketing, affecting the smooth and equitable distribution of fuel to ordinary consumers.

To address the situation, the Government had introduced a temporary limit of 200 litres of High Speed Diesel per customer or vehicle per day at retail outlets. Industrial, institutional and commercial consumers were also directed to procure fuel through designated consumer pumps rather than regular petrol pumps.

The objective of these measures was to ensure that retail consumers continued to receive adequate petrol and diesel supplies across the country. The restrictions helped stabilise retail fuel availability during a sensitive period and supported fair distribution through authorised channels.

Following the latest assessment, the Ministry of Petroleum and Natural Gas has concluded that the supply situation has improved and normal distribution arrangements can resume. Accordingly, the order issued on 12 June 2026 has been withdrawn with effect from 1 July 2026.

The move signals the restoration of normal fuel supply conditions across the country and reflects the Government’s confidence in the availability and distribution of petroleum products. Retail consumers, commercial users and institutional buyers are now expected to return to regular procurement systems as the temporary controls come to an end.

Source: PIB