The Centre has withdrawn temporary restrictions on the sale and distribution of petrol and diesel from July 1 after reviewing the improved fuel supply situation across the country.
New Delhi: The Ministry of Petroleum and Natural Gas has withdrawn the temporary regulatory measures governing the sale and distribution of Motor Spirit (Petrol) and High Speed Diesel (HSD) through retail outlets of Public Sector Oil Marketing Companies (OMCs), with effect from July 1, 2026.
The decision comes after the Centre reviewed the country's petroleum product supply situation and concluded that the temporary restrictions, introduced during the West Asia crisis, are no longer required in the public interest.
The restrictions were imposed on June 12, 2026, following disruptions in global fuel supplies caused by the conflict in West Asia. During the crisis, the Government maintained stable retail prices for petrol and diesel despite a sharp rise in international fuel prices to protect consumers.
However, the resulting price gap between retail outlets and bulk supply channels led some industrial, commercial and institutional consumers to procure fuel through retail fuel stations. According to the Ministry, this resulted in instances of diversion, hoarding and black marketing, affecting the equitable distribution of fuel.
To address the issue, the Government had imposed 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 instead of regular retail outlets.
The measures were intended to prevent black marketing, hoarding and diversion while ensuring uninterrupted availability of petrol and diesel for retail consumers across the country.
Following an improvement in domestic fuel availability and overall supply conditions, the Ministry has now decided to revoke the temporary order. The Government stated that the restrictions successfully ensured adequate availability of petrol and diesel during the period of supply disruptions while protecting the interests of retail consumers.
With the withdrawal of the order from July 1, normal fuel sale and distribution arrangements will resume at Public Sector Oil Marketing Company retail outlets across the country.
The Ministry said the decision reflects the restoration of stable fuel supplies and the Government's continued commitment to maintaining energy security while ensuring uninterrupted access to petroleum products for consumers.
