No restriction on buying petrol and diesel from July 1? Here's what changes

The central government has lifted restrictions on purchase of petrol and diesel by retail, commercial and industrial consumers, with effect from next month, 1st July (Wednesday), according to a PTI report.

The limits were initially imposed as emergency measures in order to manage fuel supplies amid shortage due to the war in West Asia and the closure of the vital Strait of Hormuz waterway.

Fuel restrictions lifted: What has changed for you?

According to an order from the Ministry of Petroleum and Natural Gas (PNG), dated 29 June, the following restrictions have been lifted:

• Lifted cap of sale of up to 200 litres of diesel per day to a single vehicle at retail fuel stations — This means you can purchase diesel without limit as required from 1 July 2026.

• Lifted ban on sale of petrol and diesel to commercial and industrial consumers at retail fuel stations — This means that commercial and industrial consumers are not limited to sourcing fuel from their own consumer pumps.

The restrictions had been introduced to prevent local fuel shortages amid global supply disruptions. “The temporary measures were considered necessary and expedient in the public interest to maintain supplies of motor spirit (petrol) and high-speed diesel...and secure their equitable distribution and availability at fair prices,” the order stated.

Why have the fuel restrictions been lifted?

According to the ministry, it is “satisfied” over the current fuel supply of petroleum products in India and no longer finds it necessary to continue the public interest restrictions, first imposed on 12 June.

“Therefore, in exercise of powers conferred by clause 3 of the Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, the Central Government hereby withdraws its Order of even number dated 12th June 2026 with effect from 1st July 2026,” it added.

It added that withdrawal of the restrictions, with effect from July 1, reflects an improvement in the domestic supply situation and the restoration of normal fuel distribution arrangements.

Why were the fuel purchase restrictions imposed?

The limits were imposed for 90 days after bulk buyers, especially for diesel, began purchasing fuel from retail petrol pumps due to the price differences. It noted that while diesel at petrol pumps costs ₹95.20/litre in Delhi, bulk sales are priced at ₹134.50/litre. The price difference was part of state-owned oil companies' move to protect common users from cost increase after the war broke in late February.

As of early June, state fuel retailers suffered revenue loss of about ₹36.5 per litre on diesel sales to retail customers, and ₹9 per litre on petrol. The fuel is sold at market rates for industrial buyers.

However, bulk users, had been tapping retail pumps for their needs, resulting in an abnormal rise in demand in some pockets. Commercial and industrial users include telecom towers, trucking companies and state road transport buses, and industries using diesel for power generation and other feedstock needs.

“The measures were aimed at preventing black marketing, hoarding and diversion of diesel while ensuring uninterrupted availability of petrol and diesel to retail consumers,” as per the statement.

Notably, diesel accounts for around 39% of India’s total petroleum product consumption — 94.7 million tonnes of diesel was sold in FY26 out of 243.19 million tonnes of total product sales.

(With inputs from PTI)