The Centre has withdrawn the temporary restrictions on the sale of petrol and diesel from July 1 after concluding that emergency measures imposed earlier this month to safeguard fuel supplies are no longer required.
With the decision, commercial, industrial and institutional consumers can once again purchase petrol and diesel from retail fuel stations, while the 200-litre daily cap on diesel sales to a single vehicle has also been removed.
In an order dated June 29, the Ministry of Petroleum and Natural Gas rescinded its June 12 directive, saying a review of the country's fuel supply situation found that the temporary restrictions were no longer necessary in the public interest.
The June 12 restrictions had been introduced to prevent local fuel shortages after global supply disruptions triggered abnormal demand for retail fuel.
"The temporary measures were considered necessary and expedient in the public interest to maintain supplies of motor spirit (petrol) and high speed diesel and secure their equitable distribution and availability at fair prices," the June 29 order said.
Following a review of the prevailing supply situation, the ministry said it was "satisfied" that the restrictions were no longer required.
"Therefore, in exercise of powers conferred by clause 3 of the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, the Central Government hereby withdraws its Order of even number dated 12th June, 2026 with effect from 1st July, 2026," it said.
The restrictions had been imposed for up to 90 days after bulk users shifted purchases to retail pumps because of the wide price gap between retail and bulk diesel.
While diesel retailed at petrol pumps in Delhi costs Rs 95.20 per litre, bulk diesel is priced at Rs 134.50 per litre. The differential emerged after state-owned oil companies moderated retail fuel prices to shield consumers from the surge in crude prices following the West Asia crisis in late February.
As a result, bulk users such as industries, telecom towers, trucking companies and state road transport undertakings increasingly sourced diesel from retail pumps, leading to an abnormal rise in demand in some regions.
On June 12, the government directed that retail outlets could sell diesel only into vehicle fuel tanks or PESO-approved containers and not more than 200 litres per customer or vehicle per day. It also barred industrial, commercial and institutional consumers from purchasing petrol and diesel from retail outlets, requiring them instead to source fuel through their own consumer pumps.
The ministry said the restrictions were aimed at preventing black marketing, hoarding and diversion of diesel while ensuring uninterrupted fuel availability for retail consumers.
The decision to withdraw the curbs follows an improvement in crude oil and fuel supplies from Gulf producers after tensions in West Asia eased, allowing shipping through the Strait of Hormuz to resume normally.
In a statement, the ministry said it had reviewed the domestic fuel supply situation and concluded that the emergency measures were no longer required in the public interest.
The restrictions had ensured adequate nationwide supplies of petrol and diesel during the disruption, it said, adding that their withdrawal reflects improved domestic availability and the restoration of normal fuel distribution arrangements.
The order takes effect from July 1.
(With inputs from PTI)