Govt withdraws restrictions on sale, distribution of petrol and diesel as supplies improve

NEW DELHI: The Ministry of Petroleum and Natural Gas has rolled back emergency curbs on petrol and diesel sales, signalling that domestic fuel supply has stabilised after weeks of disruption linked to the West Asia crisis.

“The Ministry of Petroleum and Natural Gas has withdrawn the temporary regulatory measures governing the sale and distribution of Motor Spirit (MS) and High Speed Diesel (HSD) through retail outlets of Public Sector Oil Marketing Companies with effect from 1st July, 2026,” Ministry of Petroleum and Natural Gas said in a release.

It said that during the period of disruptions arising from the West Asia crisis, the Government continued to shield retail consumers from the sharp increase in international fuel prices by maintaining stable retail prices of petrol and diesel. This led to a significant price difference between retail fuel prices and those applicable to bulk consumers. Consequently, certain industrial, commercial and institutional consumers began procuring fuel through retail outlets, “leading to instances of diversion, hoarding and black marketing, which affected the equitable distribution of fuel”.

Government withdraws temporary restrictions on sale and distribution of Petrol and Diesel

Ministry of Petroleum and Natural Gas (@PetroleumMin) has withdrawn the temporary regulatory measures governing the sale and distribution of Motor Spirit (MS) and High Speed Diesel…

— PIB India (@PIB_India) June 30, 2026

To address this situation, the temporary regulatory measures, introduced on June 12, 2026, prescribed a temporary limit of 200 litres of High Speed Diesel (HSD) per customer/vehicle per day at retail outlets and required industrial, institutional and commercial consumers to procure fuel through designated consumer pumps instead of 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.

“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 Accordingly, the Order dated June 12, 2026 stands withdrawn with effect from July 1, 2026,” the release said.

It said that the temporary measures helped ensure adequate availability of petrol and diesel across the country while safeguarding the interests of retail consumers. Their withdrawal reflects the improvement in the supply situation and the restoration of normal supply arrangements, the release said.

With global crude volatility easing and domestic logistics stabilised, bulk buyers can resume normal procurement channels, while retail outlets return to unrestricted sales. The government’s swift imposition and withdrawal of the cap underscores a broader strategy of targeted, time-bound interventions to protect consumers during external shocks without distorting the market long term. (ANI)