The Indian government has announced the removal of temporary restrictions on the sale and distribution of petrol and diesel, effective July 1st, as the disruptions to global supply chains caused by the West Asia crisis have subsided and the country's petroleum supply situation has improved. These measures, initially implemented on June 12th, had barred industrial, institutional, and commercial consumers from purchasing fuel at retail outlets, limited high-speed diesel purchases to 200 liters per customer or vehicle daily, and aimed to prevent hoarding, diversion, and black marketing that arose due to stable retail prices amidst rising international fuel costs. The withdrawal signifies a return to normal fuel supply arrangements and follows the recent removal of sectoral restrictions on non-domestic packed LPG.

The Indian government has announced the removal of temporary restrictions on the sale and distribution of petrol and diesel, effective July 1st, as the disruptions to global supply chains caused by the West Asia crisis have subsided and the country's petroleum supply situation has improved. These measures, initially implemented on June 12th, had barred industrial, institutional, and commercial consumers from purchasing fuel at retail outlets, limited high-speed diesel purchases to 200 liters per customer or vehicle daily, and aimed to prevent hoarding, diversion, and black marketing that arose due to stable retail prices amidst rising international fuel costs. The withdrawal signifies a return to normal fuel supply arrangements and follows the recent removal of sectoral restrictions on non-domestic packed LPG.

The Indian government has announced the removal of temporary restrictions on the sale and distribution of petrol and diesel, effective July 1st, as the disruptions to global supply chains caused by the West Asia crisis have subsided and the country's petroleum supply situation has improved. These measures, initially implemented on June 12th, had barred industrial, institutional, and commercial consumers from purchasing fuel at retail outlets, limited high-speed diesel purchases to 200 liters per customer or vehicle daily, and aimed to prevent hoarding, diversion, and black marketing that arose due to stable retail prices amidst rising international fuel costs. The withdrawal signifies a return to normal fuel supply arrangements and follows the recent removal of sectoral restrictions on non-domestic packed LPG.

The Centre, on Monday, announced that the temporary restrictions imposed on the sale and distribution of petrol and diesel will be removed from July 1, noting that the measures introduced during disruptions caused by the West Asia crisis were no longer required.

The ministry of petroleum and natural gas said in a release it 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 following a review of the country's petroleum supply situation.

The restrictions were introduced on June 12 to safeguard domestic fuel supplies after the conflict in West Asia disrupted global supply chains.

Under the temporary measures, industrial, institutional and commercial consumers were barred from buying petrol and diesel from retail outlets and were required to procure fuel through designated consumer pumps. The government had also imposed a temporary cap of 200 litres of HSD per customer or vehicle per day at retail fuel stations.

According to the government, the restrictions were brought in after retail fuel prices remained stable despite a sharp increase in international fuel prices during the crisis. The price difference between retail and bulk fuel prices led some industrial, commercial and institutional consumers to divert purchases to retail outlets, resulting in instances of hoarding, diversion and black marketing that affected the equitable distribution of fuel.

The government said the temporary measures helped prevent such practices while ensuring the uninterrupted availability of petrol and diesel for retail consumers across the country.

Following a review, the Centre concluded that the supply situation had improved and that the temporary restrictions were no longer required in the public interest.

"The Order dated 12th June, 2026 stands withdrawn with effect from 1st July, 2026," the ministry said.

The withdrawal of the restrictions, the government said, reflects the restoration of normal fuel supply arrangements across the country.

A few days ago, the government had also removed all sectoral restrictions on the supply of non-domestic packed LPG, restoring supplies to the levels prevailing before the West Asia crisis.

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