Centre Withdraws Temporary Petrol and Diesel Sale Restrictions from July 1
The Central Government has announced that the temporary restrictions on the sale and distribution of petrol and diesel will be lifted on 1 July 2026, returning fuel sales to normal across the country. This decision follows a review of the petroleum supply situation, leading the government to conclude that the emergency measures implemented earlier this month are no longer necessary.
The Ministry of Petroleum and Natural Gas stated that the temporary rules, which took effect on 12 June, were introduced in response to disruptions caused by the West Asia crisis. At that time, the government opted to keep petrol and diesel retail prices unchanged despite rising international fuel prices. While this protected consumers from sudden price increases, it created a significant gap between retail fuel prices and bulk fuel rates.
To prevent abuse of this price discrepancy, the government temporarily capped the purchase of High-Speed Diesel (HSD) at 200 liters per customer or vehicle per day at retail outlets operated by Public Sector Oil Marketing Companies. Additionally, industrial, institutional, and commercial consumers were instructed to follow specific supply arrangements during this period.
These temporary measures were primarily aimed at preventing black marketing, hoarding, and the diversion of diesel, while ensuring that ordinary consumers did not face shortages. Despite global uncertainties, fuel remained available at retail outlets, helping to maintain stability.
After reviewing the current situation, the government observed that fuel supplies across the country have significantly improved and normal distribution channels have been restored. Consequently, the temporary restrictions will officially end on 1 July, allowing customers and businesses to purchase fuel without the previous limitations.
The Ministry emphasized that this withdrawal reflects confidence in the country’s fuel supply network and the successful management of the temporary disruptions. Officials noted that the emergency measures achieved their goal of protecting retail consumers and ensuring uninterrupted fuel availability during a challenging period.
With the restrictions now lifted, petrol pumps operated by Public Sector Oil Marketing Companies will resume regular sales and distribution practices. This decision is expected to provide relief to businesses and commercial users, signaling that India’s fuel supply chain has stabilized following the disruptions related to the West Asia crisis.
