The government on Monday announced that effective July 1, it will lift restrictions on state-run oil companies selling auto fuels to bulk consumers and scrap the 200-litre daily limit per vehicle for diesel sales.
The restrictions were introduced on June 12 against the backdrop of severe disruptions in global energy supply due to the blockade of the Strait of Hormuz and a wide difference in the price of retail fuel prices and those applicable to bulk consumers.
The temporary measures helped ensure adequate availability of petrol and diesel across the country while safeguarding the interests of retail consumers. Their withdrawal reflects the improvement in the supply situation and the restoration of normal supply arrangements, the government said in a statement on Monday.
“Government continued to shield retail consumers from the sharp increase in international fuel prices by maintaining stable retail prices of petrol and diesel. This led to a significant price difference between retail fuel prices and those applicable to bulk consumers. Consequently, certain industrial, commercial and institutional consumers began procuring fuel through retail outlets, leading to instances of diversion, hoarding and black marketing, which affected the equitable distribution of fuel,” the ministry statement said.
To address this situation, temporary regulatory measures was introduced on June 12, it said. As part of this exercise, the government directed industrial, institutional and commercial consumers to only procure fuel through designated consumer pumps instead of retail outlets.
“The measures were aimed at preventing black marketing, hoarding and diversion of diesel while ensuring uninterrupted availability of petrol and diesel to retail consumers,” it added.
“Following a review of the supply situation of petroleum products in the country, the Government has concluded that the temporary regulatory measures are no longer required in the public interest. Accordingly, the Order dated 12th June, 2026 stands withdrawn with effect from 1st July, 2026,” it said.
Monday’s announcement comes days after the government on June 25 lifted restrictions on the commercial supply of liquefied petroleum gas (LPG) cylinders, and eased the curbs on sale of bulk LPG to industrial customers.
The supply of bulk LPG, suspended at the onset of the energy crisis, has been relaxed to 50% of pre-crisis consumption levels, the government said last week. Packed LPG generally refers to the 19kg cylinders used by hotels, restaurants and commercial units. Industries consuming more than 50 tonnes a month generally have bulk LPG facilities on their premises.
