Government withdraws restrictions on sale, distribution of petrol and diesel as supplies improve

India's Ministry of Petroleum and Natural Gas has withdrawn emergency restrictions on the sale and distribution of petrol and diesel, signaling a stabilization of domestic fuel supplies. The temporary measures, which had been in place since June 12, 2026, are no longer deemed necessary in the public interest.

These curbs were implemented to counteract disruptions caused by the West Asia crisis, which had led to a significant price difference between retail and bulk consumer fuel prices. This disparity encouraged industrial, commercial, and institutional consumers to procure fuel from retail outlets, resulting in diversion, hoarding, and black marketing, and affecting equitable distribution.

The withdrawn measures included a temporary limit of 200 liters of High Speed Diesel (HSD) per customer/vehicle per day at retail outlets. Industrial, institutional, and commercial consumers were also required to purchase fuel through designated consumer pumps instead of retail outlets.

The government stated that these temporary measures successfully ensured adequate availability of fuel across the country and protected the interests of retail consumers while preventing market distortions. The withdrawal reflects an improvement in the supply situation and the restoration of normal supply arrangements.

With global crude oil volatility easing and domestic logistics stabilized, bulk buyers can now resume their normal procurement channels, and retail outlets can return to unrestricted sales. This swift, targeted intervention demonstrates the government's strategy to protect consumers during external shocks without causing long-term market distortions.