Govt lifts restrictions on sale of petrol, diesel from July 1

• The Ministry of Petroleum and Natural Gas has withdrawn the temporary regulatory measures governing the sale and distribution of petrol and diesel through retail outlets of Public Sector Oil Marketing Companies with effect from July 1.

• The move will also end the cap on the diesel quantity that can be sold to a single vehicle in a day at retail fuel stations.

• On June 12, the ministry issued the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, directing fuel retailers and oil marketing companies to curb bulk purchases from retail outlets for periods of up to 90 days at a time.

• The government had ordered that retail outlets could sell diesel only into a vehicle tank or PESO-approved container, and not more than 200 litres per customer or vehicle per day. 

• Also, industrial, commercial and institutional consumers were no longer allowed to buy petrol or diesel from retail outlets. They must source their fuel from their own consumer pumps.

• The restrictions had been introduced to prevent local fuel shortages amid global supply disruptions.

• After a review of the prevailing supply situation of petroleum products in the country, the ministry said it is “satisfied” that it is no longer necessary in the public interest to continue with the June 12 order.

• The move follows an improvement in crude oil and fuel supplies from Gulf producers after tensions in the region eased, allowing energy shipments through the Strait of Hormuz to resume.