The Government has decided to withdraw the temporary regulatory measures governing the sale and distribution of Petrol and Diesel. The Ministry of Petroleum and Natural Gas said that with effect from 1st July, 2026 the temporary measures will be lifted from Motor Spirit and High Speed Diesel through retail outlets of Public Sector Oil Marketing Companies.
According to the statement, during the period of disruptions arising from the West Asia crisis, the government continued to shield retail consumers from the sharp increase in international fuel prices by maintaining stable retail prices of petrol and diesel. This led to a significant price difference between retail fuel prices and those applicable to bulk consumers.
The Ministry said that to address this situation, the temporary regulatory measures, introduced on 12th of this month, prescribed a temporary limit of 200 litres of High Speed Diesel per customer or vehicle per day at retail outlets and required industrial, institutional and commercial consumers. The measures were aimed at preventing black marketing, hoarding and diversion of diesel while ensuring uninterrupted availability of petrol and diesel to retail consumers.
Following a review of the supply situation of petroleum products in the country, the Government has concluded that the temporary regulatory measures are no longer required in the public interest. The temporary measures helped ensure adequate availability of petrol and diesel across the country while safeguarding the interests of retail consumers. Their withdrawal reflects the improvement in the supply situation and the restoration of normal supply arrangements.
The government said it had reviewed the prevailing supply situation of petroleum products and concluded that the restrictions were "no longer necessary in the public interest." The curbs had barred industrial, commercial and institutional consumers from purchasing petrol and diesel from retail fuel stations, requiring them to source fuel from authorised bulk suppliers instead.
The order stated that the temporary measures, introduced on June 12 under the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, had been imposed to regulate the sale and distribution of petrol and diesel through retail outlets operated by Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).
According to the government, the restrictions were considered "necessary and expedient in the public interest to maintain supplies of Motor Spirit (MS) and High Speed Diesel (HSD) and secure their equitable distribution and availability at fair prices."
However, following a review of the domestic fuel supply situation, the order said the Centre was "satisfied that it is no longer necessary in the public interest to continue with the directions contained in the said Order." It consequently withdrew the June 12 notification with effect from July 1, 2026.
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