India will lift restrictions on the retail sale of petrol and diesel to commercial buyers from July 1, ending temporary curbs imposed earlier this month to protect domestic fuel availability during disruptions in global energy trade, according to a government order issued on June 29.

The curbs had barred industrial, institutional and commercial consumers from buying petrol and diesel from retail outlets. Diesel sales at fuel stations were also capped at 200 litres per customer or vehicle per day.

The withdrawal will allow commercial consumers, including transport operators and industrial users, to resume purchases from retail fuel outlets without the quantity restrictions introduced in June.

The restrictions were imposed through the Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, notified by the Ministry of Petroleum and Natural Gas on June 12.

At the time, the ministry said the order was aimed at curbing black marketing and hoarding of diesel, preventing diversion of fuel from retail outlets, and ensuring supplies for regular retail consumers.

The ministry had said the measures were temporary and initially valid for up to 90 days. It had also said the curbs were not a rationing measure and that there was no shortage of petrol or diesel in the country.

The June order followed what the government described as uneven demand growth at some retail fuel outlets after bulk diesel consumers shifted purchases to petrol pumps operated by public sector oil marketing companies.

According to the petroleum ministry, industrial, institutional and commercial consumers had moved part of their fuel procurement from dedicated consumer pumps to retail outlets because of the gap between bulk and retail diesel prices.

The ministry said retail diesel was around Rs 40 per litre cheaper than bulk diesel, as pricing for industrial and bulk supplies continued to track international market prices.

The ministry also said private oil marketing companies recorded a 58 percent decline in high-speed diesel sales in May 2026 due to higher prices fixed by them, while diesel sales through public sector OMC retail outlets rose sharply in several districts.

Government data cited by the ministry showed that 327 districts recorded more than 10 percent growth in diesel sales through PSU OMC retail outlets in May 2026 from a year earlier, while 80 districts saw growth of more than 30 percent.

The order had directed Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation to ensure that diesel at retail outlets was dispensed only into vehicle tanks or Petroleum and Explosives Safety Organisation-approved containers.

It had also prohibited resale of diesel bought from retail outlets and placed compliance responsibility on OMCs and retail outlet dealers.

State governments and Union Territory administrations were asked to act against black marketing, unauthorised diversion and other malpractices under the Essential Commodities Act, 1955, and other applicable laws.

The petroleum ministry had said public sector OMCs were absorbing losses of around Rs 500 crore per day on petrol, diesel and domestic LPG sales during the West Asia disruption to protect retail consumers.

The government had also said India remained the world’s fourth-largest refiner and fifth-largest exporter of refined petroleum products, while maintaining that domestic fuel supplies were uninterrupted.

With the latest order, the emergency retail restrictions introduced in June will cease from July 1, restoring fuel access for commercial buyers at retail outlets.

Moneycontrol News