The Ministry of Petroleum and Natural Gas has announced the withdrawal of temporary regulatory measures governing the sale and distribution of petrol and diesel through public sector fuel retail outlets. The revised arrangement will come into effect from July 1, 2026, following an improvement in the country’s petroleum product supply situation.
The Government has decided to revoke the temporary restrictions introduced earlier this month on the sale and distribution of Motor Spirit (petrol) and High-Speed Diesel (HSD). According to the Ministry of Petroleum and Natural Gas, the order issued on June 12, 2026, will stand withdrawn from July 1, restoring normal fuel supply arrangements across public sector Oil Marketing Company (OMC) retail outlets.
The temporary measures were introduced during disruptions caused by the West Asia crisis, when the Government sought to shield retail consumers from fluctuations in international fuel prices by maintaining stable domestic retail rates. The resulting gap between retail and bulk fuel prices led some industrial, institutional and commercial consumers to purchase fuel through retail outlets, creating concerns over diversion, hoarding and black marketing.
To address the situation, the Government had imposed restrictions that included a daily purchase limit of 200 litres of High-Speed Diesel per customer or vehicle at retail fuel stations. Industrial, commercial and institutional users were also directed to obtain supplies through designated consumer pumps instead of retail outlets. The objective was to ensure uninterrupted fuel availability for retail consumers while preventing misuse of the distribution system.
Following a review of petroleum product availability, the Ministry concluded that the temporary regulatory framework is no longer required in the public interest. Officials said the measures had fulfilled their intended purpose by maintaining adequate supplies during a period of market disruption and safeguarding fuel access for retail customers across the country.
With supply conditions now stabilised, the withdrawal of the restrictions marks a return to normal distribution practices. The Ministry said the decision reflects the improved availability of petroleum products and the restoration of regular supply arrangements while continuing to support an orderly and efficient fuel distribution network.
The revised policy will take effect from July 1, 2026, ending the temporary controls that had been in place since mid-June.
Source: This article is based on an official press release issued by the Press Information Bureau (PIB), Ministry of Petroleum & Natural Gas, Government of India
Press Release Page | Press Information Bureau
