New Delhi, 29 June

The government will lift restrictions on the sale of petrol and diesel to commercial and industrial consumers from 1 July, easing emergency measures imposed to manage fuel supplies.

The move will also end the cap on the diesel quantity that can be sold to a single vehicle in a day at retail fuel stations, reflecting an improvement in the country's fuel supply situation.

In an order dated 29 June, the Ministry of Petroleum and Natural Gas rescinded its June 12 directive that had capped diesel sales to a single vehicle at 200 litres a day and barred industrial, commercial and institutional consumers from purchasing petrol and diesel from retail fuel stations.

The restrictions had been introduced to prevent local fuel shortages amid global supply disruptions.

"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 29 June order said.

After a review of the prevailing supply situation of petroleum products in the country, the ministry said it is "satisfied" that it is no longer necessary in the public interest to continue with the 12 June order.

"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 said.

The move follows an improvement in crude oil and fuel supplies from Gulf producers after tensions in the region eased, allowing energy shipments through the Strait of Hormuz to resume.

On 12 June, the government had ordered that retail outlets could sell diesel only into a vehicle tank or PESO-approved container, and not more than 200 litres per customer or vehicle per day. Also, industrial, commercial and institutional consumers were no longer allowed to buy petrol or diesel from retail outlets. They must source their fuel from their own consumer pumps.

The restrictions, which were put in place for up to 90 days, followed abnormal demand growth, particularly that of diesel, in some pockets after bulk users started buying fuel from petrol pumps due to the pricing difference. While diesel at petrol pumps costs Rs 95.20 a litre in Delhi, bulk sales are priced at Rs 134.50.

The differential arose as state-owned oil companies modulated retail prices to insulate common users from the spike in cost that followed the West Asia crisis in late February. While bulk users, such as telecom towers and industries using diesel for power generation and other feedstock needs, are charged market price, the retail pump rates are way lower than the cost.

Commercial customers like trucking companies and state road transport buses, too, had been tapping pumps for their needs, resulting in an abnormal rise in demand in some pockets.

The government eased the restrictions after crude oil and fuel supplies from Gulf producers improved following a de-escalation of tensions in West Asia, which enabled normal shipping through the Strait of Hormuz to resume.

The ministry, on 12 June, issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, directing fuel retailers and oil marketing companies to curb bulk purchases from retail outlets for periods of up to 90 days at a time.

Later, the ministry, in a statement, said it has withdrawn temporary restrictions on the sale and distribution of petrol and diesel from 1 July after reviewing domestic fuel supplies and concluding that emergency measures imposed earlier this month are no longer needed.

The curbs were introduced after the West Asia conflict disrupted global energy markets. While the government kept domestic retail fuel prices unchanged despite a sharp rise in international prices, the resulting gap between retail and bulk fuel prices prompted some commercial users to shift purchases to retail outlets.

"The measures were aimed at preventing black marketing, hoarding and diversion of diesel while ensuring uninterrupted availability of petrol and diesel to retail consumers," the statement said.

"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 the restrictions ensured adequate nationwide supplies of petrol and diesel during the disruption. Their withdrawal reflects an improvement in the domestic supply situation and the restoration of normal fuel distribution arrangements.

The order takes effect from 1 July.