The government has withdrawn its order capping diesel sales at retail outlets to 200 litres per customer or vehicle per day with effect from July 1, 2026, saying the country's fuel supply situation has improved.
According to an order issued by the Ministry of Petroleum and Natural Gas, the temporary restrictions introduced on June 12, 2026, under the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, are no longer required following a review of the prevailing petroleum supply situation in the country.
"The Central Government on review of the prevailing supply situation of petroleum products in the country is satisfied that it is no longer necessary in the public interest to continue with the directions contained in the said Order," the ministry said in its notification.
On June 12, the government had capped diesel sales at public sector oil marketing company (OMC) retail outlets at 200 litres per customer or vehicle per day to curb bulk purchases and prevent hoarding amid concerns over fuel supplies. It had also prohibited the resale of fuel purchased from retail outlets.
A gazette notification issued at the time had said violations would attract penalties and legal action under the Essential Commodities Act, 1955, and other applicable laws.
The notification had made OMCs and retail outlet dealers responsible for ensuring compliance with the restrictions and preventing attempts to bypass the order. State governments and Union Territory administrations were also directed to take action against black marketing and the unauthorised diversion of fuel to protect retail consumers.
The June 12 order had imposed temporary restrictions on the sale and distribution of petrol and diesel through retail outlets operated by Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL). The measures were introduced to ensure adequate fuel supplies, discourage hoarding and maintain equitable distribution of petroleum products during a period of supply disruption.
With the latest order, all temporary restrictions imposed under the June 12 notification stand withdrawn from July 1, allowing normal fuel sales to resume at IOC, BPCL and HPCL retail outlets. The 200-litre daily limit on diesel sales will also cease to be in force.