Government Withdraws Temporary Fuel Sale Restrictions
The Ministry of Petroleum and Natural Gas on Monday issued an order lifting restrictions on the retail sale of petrol and diesel at outlets run by public sector oil marketing companies (OMCs), effective from July 1, 2026. The decision revokes the temporary regulatory measures that had been introduced on June 12, 2026, including a daily cap of 200 litres per vehicle, in response to supply disruptions caused by the West Asia crisis.
Background: Why Restrictions Were Imposed
The government had maintained stable retail prices for petrol and diesel during the West Asia crisis, shielding retail consumers from sharp increases in international fuel prices. However, this led to a significant price gap between retail rates and those for bulk consumers. As a result, industrial, commercial and institutional consumers began purchasing fuel through retail outlets, causing instances of diversion, hoarding and black marketing that affected equitable distribution.
To address this, the June 12 order imposed a temporary limit of 200 litres of high-speed diesel per customer per day at retail outlets and required industrial, institutional and commercial consumers to procure fuel from designated consumer pumps instead of retail outlets. The measures aimed to prevent black marketing, hoarding and diversion while ensuring uninterrupted availability for retail consumers.
Review Leads to Withdrawal
Following a review of the supply situation of petroleum products in the country, the government concluded that the temporary regulatory measures are no longer required in the public interest. The order dated June 12 stands withdrawn with effect from July 1, 2026.
The temporary measures helped ensure adequate availability of petrol and diesel across the country while safeguarding the interests of retail consumers. Their withdrawal reflects the improvement in the supply situation and the restoration of normal supply arrangements, according to the ministry's order.
Impact on Consumers and Industry
The lifting of restrictions means that retail consumers can now purchase petrol and diesel without any daily volume cap at OMC outlets. Industrial, commercial and institutional consumers are no longer required to use designated consumer pumps, allowing them to revert to regular retail outlets if they choose.
The decision is expected to ease logistics for bulk consumers who had faced constraints under the temporary regime. However, the government will continue to monitor the supply situation to prevent any recurrence of hoarding or black marketing.
