THEBUSINESSBYTE BUREAU
NEW DELHI, JUNE 29, 2026
The Centre has withdrawn the temporary restrictions on the
sale and distribution of petrol and diesel through retail outlets of public
sector oil marketing companies, citing a significant improvement in the
country's fuel supply situation. The decision will come into effect from July
1, 2026, restoring normal fuel distribution arrangements across the country.
The Ministry of Petroleum and Natural Gas said the temporary
regulatory measures, introduced on June 12 amid supply disruptions triggered by
the West Asia crisis, had successfully ensured uninterrupted fuel availability
for retail consumers while preventing hoarding, diversion and black marketing.
The restrictions were imposed after the government absorbed
the impact of soaring global crude oil prices by keeping domestic retail prices
of petrol and diesel unchanged. This created a wide price gap between retail
and bulk fuel prices, prompting several industrial, commercial and
institutional consumers to source fuel from retail outlets instead of
designated consumer pumps.
To curb the misuse, the government had capped the sale of
High Speed Diesel (HSD) at 200 litres per customer or vehicle per day at retail
outlets and directed industrial and institutional consumers to procure fuel
exclusively through designated consumer pumps.
Following a comprehensive review of the petroleum products
supply situation, the ministry concluded that the extraordinary measures were
no longer necessary in the public interest. Accordingly, the June 12 order has
been withdrawn with effect from July 1.
The ministry said the temporary restrictions had played a
crucial role in maintaining adequate availability of petrol and diesel
nationwide during a period of geopolitical uncertainty, while protecting retail
consumers from supply disruptions. Their withdrawal, it added, reflects the
restoration of normal supply conditions and improved stability in the domestic
fuel distribution network.
