- Government withdraws petrol, diesel sale restrictions from July 1, 2026.
- Restrictions implemented earlier due to West Asia crisis, price gap.
The Ministry of Petroleum and Natural Gas has withdrawn the temporary regulatory measures governing the sale and distribution of petrol (Motor Spirit) and diesel (High Speed Diesel) through retail outlets of Public Sector Oil Marketing Companies. The decision will take effect from July 1, 2026.
The restrictions were introduced on June 12, 2026, amid disruptions caused by the West Asia crisis. During the period, the government kept retail petrol and diesel prices unchanged despite a sharp rise in international fuel prices to protect consumers.
This created a significant price gap between retail and bulk fuel prices, prompting some industrial, commercial and institutional consumers to procure fuel from retail outlets instead of designated consumer pumps.
Price Gap Creates Fuel Diversion, Hoarding And Black Marketing
According to the ministry, the practice led to instances of fuel diversion, hoarding and black marketing, affecting the equitable distribution of petroleum products.
To address the situation, the government had imposed a temporary cap of 200 litres of diesel per customer or vehicle per day at retail fuel stations. Industrial, institutional and commercial consumers were also directed to procure fuel through designated consumer pumps rather than retail outlets.
Order Withdrawn With Effect From July 1
Following a review of the country’s petroleum supply situation, the government has concluded that the temporary restrictions are no longer required in the public interest. As a result, the June 12 order has been withdrawn with effect from July 1.
The ministry said the temporary measures helped ensure adequate availability of petrol and diesel across the country while protecting retail consumers. Their withdrawal reflects the improvement in fuel supplies and the restoration of normal distribution arrangements.
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