On 29 June 2026, the Ministry of Petroleum and Natural Gas (MoPNG) has announced the withdrawal of the temporary restrictions on the sale and distribution of Motor Spirit (Petrol) and High Speed Diesel (HSD) through retail outlets of Public Sector Oil Marketing Companies.
These measures will cease to operate with effect from 1 July 2026.
Why Were the Temporary Restrictions Introduced?
During the disruptions arising from the West Asia crisis, the Government continued to shield retail consumers from the sharp rise in international crude oil prices by maintaining stable retail prices of petrol and diesel. As a result, a significant price differential emerged between fuel sold through retail outlets and fuel supplied to bulk consumers.
This pricing disparity prompted certain industrial, commercial, and institutional consumers to procure fuel from retail outlets instead of designated consumer pumps. The practice led to instances of fuel diversion, hoarding, and black marketing, adversely affecting the equitable distribution of petroleum products.
Key Highlights:
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This notification withdraws the temporary restrictions on the sale and distribution of petrol and diesel through retail outlets of Public Sector Oil Marketing Companies.
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The restrictions were introduced to prevent diversion, hoarding, and black marketing of fuel during disruptions caused by the West Asia crisis.
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The temporary measures limited the sale of High Speed Diesel (HSD) to 200 litres per customer/vehicle per day at retail outlets.
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Industrial, institutional, and commercial consumers were required to procure fuel through designated consumer pumps instead of retail outlets.
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The Government withdrew the restrictions after reviewing the petroleum supply situation and concluding that the measures were no longer required in the public interest.
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The withdrawal restores normal fuel distribution arrangements while ensuring continued availability of petrol and diesel across the country.
Also Read: India Notifies Natural Gas (Supply Regulation) Order, 2026 Amid Middle East Conflict
