Daijiworld Media Network – New Delhi
New Delhi, June 30: The Centre has withdrawn all restrictions on the sale of petrol and diesel from July 1, restoring normal fuel retail operations across the country after a brief spell of emergency measures introduced to manage supply pressures and abnormal demand patterns in certain regions.
The decision lifts limits imposed on commercial and industrial consumers and removes the cap restricting diesel sales to 200 litres per vehicle per day at retail fuel stations, signalling an improvement in the country’s fuel supply situation.
The government had earlier issued an order on June 11 introducing restrictions amid concerns over supply disruptions and uneven demand across retail outlets.
Industrial, commercial and institutional consumers had been barred from purchasing petrol and diesel from retail stations and were directed to source fuel through dedicated supply channels meant for bulk users.
In an order dated June 29, the ministry of petroleum and natural gas rescinded its earlier directive, stating that the temporary measures were no longer required in public interest following a detailed review of the prevailing fuel supply situation.
"The temporary measures were considered necessary and expedient in the public interest to maintain supplies of motor spirit (petrol) and high-speed diesel and secure their equitable distribution and availability at fair prices," the June 29 order stated.
After assessing current conditions, the ministry said it was "satisfied" that continuation of the restrictions was no longer justified.
"Therefore, in exercise of powers conferred by clause 3 of the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, the Central Government hereby withdraws its order of even number dated 12th June, 2026 with effect from 1st July, 2026," it added.
The restrictions had been introduced following abnormal spikes in diesel demand in certain pockets, triggered after bulk consumers began purchasing fuel from retail outlets due to price differences between retail and bulk rates.
State-run oil marketing companies had maintained relatively stable retail prices to shield consumers from global volatility following tensions in West Asia, resulting in a widening gap between pump prices and bulk rates. While diesel at retail outlets in Delhi was priced at Rs 95.20 per litre, bulk sales stood at Rs 134.50 per litre.
This price gap led to commercial users, including transport operators, telecom towers and industries using diesel for power generation, increasingly relying on retail fuel stations, creating pressure on supply chains in some regions.
The restrictions were initially imposed for up to 90 days following disruptions in global energy markets triggered by tensions in West Asia, which affected crude oil flows through key shipping routes, including the Strait of Hormuz.
A separate statement from the ministry said the measures had been necessary to prevent hoarding, black marketing and diversion of diesel, while ensuring uninterrupted availability of fuel for genuine retail consumers.
"Following a review of the supply situation of petroleum products in the country, the Government has concluded that the temporary regulatory measures are no longer required in the public interest. Accordingly, the Order dated 12th June, 2026 stands withdrawn with effect from 1st July, 2026," it said.
Officials said the easing of restrictions reflects improved global supply conditions and stabilisation in crude oil markets, alongside the restoration of normal shipping routes and fuel distribution networks.
With the rollback, petrol and diesel sales across India are expected to return to normal operations from July 1, marking the end of short-term regulatory intervention in fuel retailing.