Centre to Lift All Commercial Fuel Sale Restrictions from July 1

New Delhi (IANS): The central government on Monday announced the withdrawal of temporary restrictions on the retail sale of petrol and diesel to commercial consumers, effective July 1, 2026. The move restores normal fuel procurement for industrial, institutional, and transport sector users following a brief period of regulatory intervention.

Under the new government order, commercial buyers can once again purchase fuel from retail stations without any quantity caps.

The decision ends the short-lived measures introduced via the Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026 on June 12. Those initial curbs barred industrial and institutional buyers from purchasing directly from retail stations and capped single-day diesel sales at 200 litres per customer or vehicle to protect domestic supplies amid global trade volatility.

When first implemented, the Ministry of Petroleum and Natural Gas clarified that the steps were aimed at preventing hoarding and halting the diversion of retail fuel to bulk industrial use. Officials stressed at the time that the measures did not stem from an actual nationwide fuel shortage.

The unusual surge in retail station demand occurred because bulk diesel supplies—tied directly to volatile international market trends—were priced nearly ₹40 per litre higher than retail rates. This massive price gap prompted bulk industrial buyers and transport fleets to abandon dedicated consumer pumps and crowd public sector retail outlets instead.

With the stabilization of demand and trade patterns, transport operators and manufacturing units can now resume standard, unrestricted procurement from regular retail outlets starting Wednesday.