The Ministry of Petroleum and Natural Gas withdraws temporary fuel sale curbs introduced during the West Asia crisis, citing improved supply conditions.
The Ministry of Petroleum and Natural Gas has withdrawn the temporary regulatory measures governing the sale and distribution of Motor Spirit (MS) and High Speed Diesel (HSD) through retail outlets of Public Sector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. During the disruptions arising from the West Asia crisis, the government had maintained stable retail prices of petrol and diesel to shield retail consumers from the sharp rise in international fuel prices. This created a significant price difference between retail fuel prices and those applicable to bulk consumers, leading certain industrial, commercial and institutional consumers to procure fuel through retail outlets, resulting in instances of diversion, hoarding and black marketing that affected equitable fuel distribution.
To address this, temporary regulatory measures introduced on June 12, 2026 prescribed a limit of 200 litres of HSD per customer or vehicle per day at retail outlets and required industrial, institutional and commercial consumers to procure fuel through designated consumer pumps instead of retail outlets. Following a review of the petroleum products supply situation, the government has concluded that the temporary measures are no longer required in the public interest, and the order dated June 12, 2026 stands withdrawn with effect from July 1, 2026. The government stated that the measures helped ensure adequate fuel availability while safeguarding retail consumer interests, and that their withdrawal reflects the improvement in supply conditions and restoration of normal supply arrangements.
Source: Press Information Bureau (PIB)
