New Delhi: The Centre has withdrawn the temporary restrictions imposed on the sale and distribution of petrol and diesel through public sector oil marketing company outlets, with effect from July 1, 2026.
The restrictions were introduced on June 12 following disruptions caused by the West Asia crisis. To shield consumers from rising global fuel prices, the government had kept retail petrol and diesel prices unchanged, creating a significant gap between retail and bulk fuel prices.
As a result, some industrial, commercial and institutional consumers began purchasing fuel from retail outlets, leading to cases of diversion, hoarding and black marketing. To address the issue, the government capped diesel purchases at 200 litres per customer or vehicle per day and directed bulk consumers to procure fuel through designated consumer pumps.
The Ministry of Petroleum and Natural Gas said a review of the current supply situation found that the temporary measures were no longer necessary in the public interest. Consequently, the June 12 order has been withdrawn.
The ministry stated that the restrictions helped ensure adequate fuel availability across the country and protected retail consumers during a period of supply concerns. Their withdrawal reflects improved supply conditions and the restoration of normal fuel distribution arrangements.
