Centre lifts curbs on fuel sale from July 1
200-litre daily cap on diesel purchase withdrawn
The government on Monday lifted restrictions on the sale of petrol and diesel at retail outlets run by PSU oil marketing companies (OMCs), including the daily cap of 200 litres per vehicle, with effect from July 1.
In an official statement, the Ministry of Petroleum and Natural Gas said it had withdrawn the temporary regulatory measures governing the sale and distribution of Motor Spirit (MS) and High-Speed Diesel (HSD) through retail outlets of OMCs.
The government had continued to shield retail consumers from the sharp increase in international fuel prices by maintaining stable retail prices of petrol and diesel during the disruptions arising from the West Asia crisis.
This led to a significant 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, the order said.
To address the situation, the temporary regulatory measures introduced on June 12, 2026, prescribed a 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 fuel to retail consumers.
Following a review of the petroleum products supply situation in the country, the government concluded that the temporary regulatory measures were no longer required in the public interest. Accordingly, the order dated June 12, 2026, stands withdrawn with effect from July 1, 2026, it said.
The government said the temporary measures had 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.
