Centre lifts petrol, diesel sale restrictions from July 1 as supply concerns ease

The Centre has decided to lift temporary restrictions on the sale of petrol and diesel from July 1, ending curbs imposed earlier this month to prevent local fuel shortages amid disruptions to global supply chains caused by the conflict in the Middle East.In an order issued on Monday, the government said it had reviewed the prevailing supply situation of petroleum products and concluded that the restrictions were "no longer necessary in the public interest."The order stated that the temporary measures, introduced on June 12 under the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, had been imposed to regulate the sale and distribution of petrol and diesel through retail outlets operated by Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).According to the government, the restrictions were considered "necessary and expedient in the public interest to maintain supplies of Motor Spirit (MS) and High Speed Diesel (HSD) and secure their equitable distribution and availability at fair prices."However, following a review of the domestic fuel supply situation, the order said the Centre was "satisfied that it is no longer necessary in the public interest to continue with the directions contained in the said Order." It consequently withdrew the June 12 notification with effect from July 1, 2026.The June 12 order had barred industrial, commercial and institutional consumers from purchasing petrol and diesel from retail fuel stations, directing them instead to source fuel from authorised bulk suppliers. Oil marketing companies and fuel retailers were also instructed to restrict bulk purchases from retail outlets for a period of up to 90 days.The government had said the decision was taken in response to "the current prevailing geopolitical situation affecting certain regions of the world", which had disrupted international petroleum supply chains, shipping logistics and the availability of petroleum products.It also cited "extraordinary demand growth", particularly for diesel, after bulk consumers shifted their purchases to retail fuel stations because of significant price differences. While retail prices remained lower, bulk consumers, including industries, telecom tower operators and firms using diesel for power generation, continued to pay market-linked rates.To avoid shortages for individual consumers, the Centre had also capped daily diesel purchases at retail outlets and prohibited commercial fuel buyers from sourcing petrol and diesel from petrol pumps during the restriction period.Get the latest business news and top stories. Download the TOI App.Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.