The Centre has announced that temporary restrictions on the sale of petrol and diesel will be withdrawn from July 1, bringing relief to transporters, industries and other commercial consumers. The order was issued on 29 June,2026 i.e. Monday. The government said it had reviewed the current availability of petroleum products across the country and found that the supply situation had improved. As a result, it concluded that the restrictions were "no longer necessary in the public interest."
Effect of the decision
With the decision coming into effect from 1st July,2026(Wednesday), commercial, industrial and institutional consumers will once again be able to purchase petrol and diesel directly from retail fuel stations, just like individual customers. The earlier restriction of 200 litres of diesel per customer or vehicle per day has also been removed. With the supply situation now stabilising, the government has decided to restore normal fuel sales. The move is expected to benefit transport companies, logistics operators, industries and other commercial users who had been facing operational challenges due to the restrictions.
Background of the restrictions
The restrictions were imposed in June after tensions in West Asia raised concerns over disruptions in global crude oil supplies. Although India did not face an immediate shortage, the government introduced preventive measures to ensure that petrol and diesel remained easily available across the country. The restrictions had been introduced earlier this month as a precautionary measure to protect domestic fuel supplies after the conflict in the Middle East disrupted global energy supply chains. Under the temporary order, commercial buyers such as transport operators, factories and institutions were directed to purchase fuel only through authorised bulk suppliers instead of retail fuel stations. The move was aimed at ensuring uninterrupted supplies for the general public so that panic could be avoided
Another reason behind the restrictions was the widening price difference between retail fuel and bulk supplies. Diesel available at retail pumps operated by state-run oil marketing companies was significantly cheaper than fuel sold through bulk channels. As a result, many trucking companies and commercial operators had started purchasing fuel from retail outlets, increasing pressure on public pumps.
Confidence of the government
Industry experts believe the decision reflects the government's confidence that India's fuel supply chain is stable despite recent geopolitical tensions. They also expect the withdrawal of the curbs to streamline fuel procurement for commercial consumers while ensuring that adequate supplies continue to be available for the public. The latest decision marks the end of a temporary emergency measure and restores the usual system of fuel sales across the country, offering much-needed relief to businesses that rely heavily on diesel and petrol for their day-to-day operations.