Centre Withdraws Fuel Sale Curbs From July One

06 Jul 2026 CW Team

Commercial, industrial and institutional consumers may once again purchase petrol and diesel from retail fuel stations and the 200 litre daily cap on diesel sales to a single vehicle has been removed. The earlier measures had been imposed to ensure equitable distribution and availability of motor spirit and high speed diesel during a period of abnormal retail demand. The ministry said it was satisfied that supplies had returned to normal.

The temporary curbs were introduced after global supply disruptions triggered a surge in retail demand following tensions in West Asia and a wide price gap opened between retail and bulk diesel. In Delhi diesel at retail pumps was priced at Rs 95.20 per litre while bulk diesel cost Rs 134.50 per litre, prompting industries and other bulk users to source fuel from retail outlets. The shift led to spikes in demand and risked shortages for motorists.

Under the 12 June restrictions retail outlets had been instructed to sell diesel only into vehicle fuel tanks or Petroleum and Explosives Safety Organisation (PESO) approved containers and to limit sales per customer, while industrial and commercial buyers were required to procure through their own consumer pumps. The measures were intended to prevent black marketing, hoarding and diversion and to protect uninterrupted availability for retail consumers. They were envisaged for up to 90 days.

The ministry attributed the withdrawal to improved crude oil and fuel supplies from Gulf producers and to the resumption of normal shipping through the Strait of Hormuz, which eased market pressures. The order takes effect from one July after a review that concluded the emergency measures were no longer required in the public interest.

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The central government has withdrawn temporary restrictions on the sale of petrol and diesel with effect from one July after determining that emergency measures introduced earlier in June are no longer required. The Ministry of Petroleum and Natural Gas rescinded its 12 June order by issuing a directive on 29 June that annulled limits on retail sales. The decision restores normal retail supply arrangements. Commercial, industrial and institutional consumers may once again purchase petrol and diesel from retail fuel stations and the 200 litre daily cap on diesel sales to a single vehicle has been removed. The earlier measures had been imposed to ensure equitable distribution and availability of motor spirit and high speed diesel during a period of abnormal retail demand. The ministry said it was satisfied that supplies had returned to normal. The temporary curbs were introduced after global supply disruptions triggered a surge in retail demand following tensions in West Asia and a wide price gap opened between retail and bulk diesel. In Delhi diesel at retail pumps was priced at Rs 95.20 per litre while bulk diesel cost Rs 134.50 per litre, prompting industries and other bulk users to source fuel from retail outlets. The shift led to spikes in demand and risked shortages for motorists. Under the 12 June restrictions retail outlets had been instructed to sell diesel only into vehicle fuel tanks or Petroleum and Explosives Safety Organisation (PESO) approved containers and to limit sales per customer, while industrial and commercial buyers were required to procure through their own consumer pumps. The measures were intended to prevent black marketing, hoarding and diversion and to protect uninterrupted availability for retail consumers. They were envisaged for up to 90 days. The ministry attributed the withdrawal to improved crude oil and fuel supplies from Gulf producers and to the resumption of normal shipping through the Strait of Hormuz, which eased market pressures. The order takes effect from one July after a review that concluded the emergency measures were no longer required in the public interest.

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