The central government has announced that it will lift restrictions on the sale of petrol and diesel to commercial and industrial customers from July 1, easing emergency measures imposed to manage fuel supplies. The move also removes limits on the amount of diesel that can be sold to a vehicle per day at retail fuel stations, reflecting an improvement in the fuel supply situation in the country.

In an order dated June 29, the Ministry of Petroleum and Natural Gas revoked its June 12 directive that had capped diesel sales to a vehicle at 200 litres per day and barred industrial, commercial and institutional customers from purchasing petrol and diesel from retail fuel stations.

"The Ministry of Petroleum and Natural Gas has withdrawn the temporary regulatory measures governing the sale and distribution of Motor Spirit (MS) and High Speed ​​Diesel (HSD) through retail outlets of Public Sector Oil Marketing Companies with effect from July 1, 2026," the Ministry of Petroleum and Natural Gas said in a release.

The restrictions were imposed to prevent local fuel shortages amid global supply disruptions. The June 29 order stated, "These temporary measures are considered necessary and expedient in the public interest to maintain the supply of motor spirit (petrol) and high-speed diesel...and to ensure their equitable distribution and availability at reasonable prices."

After reviewing the current supply situation of petroleum products in the country, the ministry confirmed that it was "satisfied" that the public interest no longer warrants the continuation of the June 12 order. It said, "Therefore, in exercise of the power conferred by clause 3 of the Motor Spirit and High Speed ​​Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, the Central Government withdraws its even-numbered order dated June 12, 2026, with effect from July 1, 2026."

It said that the temporary measures helped in ensuring adequate availability of petrol and diesel across the country while safeguarding the interests of retail consumers.

Temporary regulatory measures introduced on June 12, 2026, imposed a temporary limit of 200 litres of High Speed ​​Diesel (HSD) per customer/vehicle per day at retail outlets and required industrial, institutional and commercial consumers to purchase fuel from designated consumer pumps instead of retail outlets.

With global crude oil volatility easing and domestic logistics stabilizing, bulk buyers can resume normal procurement channels, while retail outlets will return to uninterrupted sales. The government's rapid imposition and removal of caps reflects a broader strategy of targeted, time-bound interventions to protect consumers during external shocks without causing long-term damage to the market.