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Government Removes Fuel Sale Restrictions as Petrol, Diesel Supply Returns to Normal from July 1

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New Delhi: The Central Government has withdrawn the temporary restrictions on the sale of petrol and diesel at retail outlets operated by public sector oil marketing companies (OMCs), including the daily purchase limit of 200 litres per vehicle, with the new order coming into effect from July 1.

In an official statement, the Ministry of Petroleum and Natural Gas said it has revoked the temporary regulations that governed the sale and distribution of Motor Spirit (petrol) and High-Speed Diesel (HSD) at retail fuel stations.

The restrictions were introduced on June 12, 2026, after disruptions caused by the West Asia crisis prompted the government to keep retail fuel prices unchanged despite rising international crude oil prices.

According to the ministry, the price gap between retail outlets and bulk consumers encouraged several industrial, commercial and institutional users to purchase fuel from retail pumps instead of designated consumer outlets. This led to incidents of fuel diversion, hoarding and black marketing, affecting the equitable distribution of petrol and diesel.

To curb such practices, the government had capped diesel sales at 200 litres per customer or vehicle per day at retail outlets and directed industrial, institutional and commercial consumers to procure fuel only through designated consumer pumps.

Following a review of the country’s fuel supply situation, the government concluded that the temporary restrictions were no longer necessary in the public interest.

The ministry said the measures had successfully ensured adequate fuel availability across the country while protecting retail consumers during the period of supply disruptions. With supply conditions now stabilised, the restrictions will stand withdrawn from July 1, 2026, restoring normal fuel sale arrangements at retail outlets.

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