Petrol, diesel sale curbs to end from July 1 as Centre eases wartime fuel restrictions

The centre will lift temporary restrictions on the sale of petrol and diesel from July 1, ending a precautionary curb that had limited access for commercial consumers at retail fuel stations.

The measures were introduced earlier this month to protect domestic fuel supplies during a period of volatility in global energy markets, and the government said a fresh review showed the restrictions were no longer needed in the public interest.

The move comes as India eases an emergency response put in place after concerns that disruptions in West Asia could affect fuel availability at home.

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Why the curbs were imposed?

The restrictions were imposed on June 12 after the Centre kept retail petrol and diesel prices unchanged even as global prices rose, widening the gap between retail and bulk rates.

That shift, officials said, had encouraged industrial, commercial and institutional buyers to source fuel from retail outlets. The petroleum ministry said this had led to instances of diversion, hoarding and black marketing, which disrupted the equitable distribution of fuel across the country.

To contain the pressure, the government barred commercial and institutional consumers from buying petrol and diesel through retail fuel stations and directed them to designated consumer pumps instead.

A calmer road lies ahead

The Centre also capped diesel purchases at 200 litres per customer or vehicle per day at retail outlets to ensure uninterrupted supplies for ordinary consumers.

Authorities had imposed the measures amid fears that the US-Israeli war on Iran, along with the closure of the Strait of Hormuz, could disturb global energy supply chains and affect fuel availability in India.

After assessing the domestic supply situation, the government concluded that the temporary steps were no longer necessary and would be withdrawn from Wednesday. The ministry maintained that the restrictions had helped preserve adequate availability during the period of uncertainty.

The wider energy reset

The petrol and diesel relaxation follows another recent energy-side adjustment: last week, the centre restored commercial LPG supplies to pre-crisis levels.

That decision rolled back temporary restrictions imposed in March after the same conflict-related disruptions affected global energy chains. Under the earlier LPG curbs, allocations for commercial consumers had been reduced, pushing hotels, restaurants, bakeries and some industries toward diesel and coal-based alternatives.

With supplies stabilising, oil marketing companies have now been told to resume full supplies of non-domestic packed LPG cylinders and partially relax bulk LPG restrictions, while consumers that have already switched to piped natural gas will not be allowed to revert to LPG.

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FAQs

Q1: Why were petrol and diesel sale restrictions imposed in India?

Ans: The Centre imposed temporary restrictions on June 12 to prevent fuel hoarding and ensure equitable distribution amid concerns over global supply disruptions.

Q2: When will petrol and diesel sale restrictions be lifted in India?

Ans: The temporary restrictions on petrol and diesel sales will be lifted from July 1, following a government review of domestic fuel supply conditions.