No more fuel purchase limits: Centre ends temporary petrol, diesel restrictions

New Delhi: The Centre has withdrawn the temporary restrictions imposed on the sale and distribution of petrol and diesel through retail outlets of public sector oil marketing companies, with the order set to take effect from 1 July 2026, the Ministry of Petroleum and Natural Gas announced.

The restrictions were introduced on 12 June in response to supply disruptions triggered by the West Asia crisis and concerns over hoarding, diversion and black marketing of fuel.

In a statement issued on Monday, the ministry said the decision to revoke the measures followed a review of the country's petroleum supply situation, which has now returned to normal.

During the disruption, the government kept retail prices of petrol and diesel unchanged despite a sharp rise in international fuel prices. This created a significant price gap between retail outlets and bulk supply channels, prompting some industrial, commercial and institutional consumers to purchase fuel from retail pumps instead of designated consumer outlets.

The ministry said the shift led to instances of fuel diversion, hoarding and black marketing, affecting the equitable distribution of petroleum products.

Under the temporary regulations, the government capped the sale of High Speed Diesel (HSD) at 200 litres per customer or vehicle per day at retail outlets. Industrial, institutional and commercial consumers were also directed to procure fuel only through designated consumer pumps.

According to the ministry, the measures were introduced to prevent misuse of subsidised retail fuel supplies while ensuring uninterrupted availability of petrol and diesel for ordinary consumers.

The government said the restrictions had achieved their objective by maintaining adequate fuel availability across the country during the period of disruption.

With the supply situation now stabilized, the ministry said the temporary order issued on 12 June has been withdrawn in the public interest, restoring normal fuel distribution arrangements from 1 July.