Fuel Sale Restrictions At Public Sector Retail Outlets Lifted From July 1

New Delhi, Jun 30 (KNN) The Ministry of Petroleum and Natural Gas has withdrawn the temporary restrictions on the sale and distribution of petrol and diesel through retail outlets of public sector oil marketing companies, with effect from July 1, 2026.
 
Temporary Fuel Curbs Introduced During West Asia Crisis 
 
The restrictions, introduced on June 12 during the West Asia crisis, were aimed at preventing diversion, hoarding and black marketing of fuel after the government kept retail fuel prices stable despite a sharp rise in international oil prices.
 
The resulting price difference between retail and bulk fuel prices had prompted some industrial, commercial and institutional consumers to purchase fuel from retail outlets, affecting the equitable distribution of petroleum products.
 
The Federation of Indian Micro, Small and Medium Enterprises also took the initiative to approach the Ministry of Petroleum regarding practical difficulties faced by MSMEs due to restrictions on procurement of diesel from retail outlets.
 
It suggested the ministry issue an immediate clarification and/or exemption for MSMEs under the powers available in Clause 4 of the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026 and ensure that legitimate industrial and commercial users are not adversely affected while pursuing the larger objective of fuel supply management.
 
Measures Aimed at Preventing Fuel Diversion 
 
Under the temporary measures, the government had capped High Speed Diesel (HSD) purchases at 200 litres per customer or vehicle per day at retail outlets and directed industrial, institutional and commercial consumers to procure fuel through designated consumer pumps instead of retail fuel stations.
 
The ministry said the restrictions were introduced to curb misuse of subsidised retail fuel and ensure uninterrupted availability of petrol and diesel for retail consumers.
 
Government Cites Improved Supply Situation 
 
Following a review of the domestic fuel supply situation, the government has concluded that the temporary measures are no longer required in the public interest and has withdrawn the June 12 order.
 
According to the ministry, the restrictions helped maintain adequate fuel availability across the country during the period of supply disruption while protecting the interests of retail consumers.
 
The withdrawal of the measures reflects the improvement in the petroleum supply situation and the restoration of normal fuel distribution arrangements.
 
(KNN Bureau)