The Central Government has decided to withdraw all emergency restrictions imposed on the purchase of petrol and diesel from July 1, 2026, bringing relief to transporters, industries and commercial fuel consumers across the country. The decision comes after authorities reviewed the fuel supply situation and concluded that petroleum availability has returned to normal.

With the new order, the 200-litre daily diesel purchase limit per vehicle at retail fuel stations has been abolished, allowing vehicle owners and commercial operators to purchase fuel according to their operational requirements. Restrictions that prevented factories, industrial units and other bulk consumers from purchasing fuel at retail petrol pumps have also been withdrawn.

The Ministry of Petroleum had introduced the emergency restrictions on June 11 following concerns over fuel availability triggered by disruptions in global crude oil markets. The curbs were initially intended to remain in force for 90 days but have now been revoked less than three weeks later after improvements in supply conditions.

Fuel supply situation stabilised

According to the government, a comprehensive review of petroleum stocks and supply chains showed that the availability of crude oil and refined petroleum products has significantly improved. As a result, officials concluded that the emergency measures were no longer required in the public interest.

A fresh order issued on June 29 formally revoked the earlier restrictions, and the revised rules will come into effect nationwide from July 1.

What changes from July 1?

The most significant change is the removal of the 200-litre daily diesel purchase limit that had been applicable at retail petrol pumps. Commercial vehicle operators, transport companies and other consumers can now purchase any quantity of diesel based on their operational needs.

Additionally, industries, manufacturing units, telecom tower operators and other commercial establishments will once again be permitted to purchase petrol and diesel directly from retail fuel stations instead of relying exclusively on bulk fuel supply channels.

Over the past 18 days, large commercial consumers had been required to procure fuel only through designated bulk sale points, a measure that often resulted in higher procurement costs.

Why were the restrictions imposed?

The emergency restrictions were introduced amid concerns arising from the US-Iran conflict, which disrupted global energy markets and raised fears of crude oil supply shortages. The government had sought to prevent hoarding, black marketing and diversion of diesel while ensuring adequate fuel availability for the general public.

Under the June 11 order, commercial buyers were barred from purchasing fuel at retail pumps, while a daily purchase cap of 200 litres of diesel per customer or vehicle was imposed across retail outlets.

Retail and bulk price gap

One of the major reasons commercial buyers shifted to retail pumps before the restrictions was the substantial difference between retail and bulk diesel prices.

For instance, diesel was available at approximately ₹95.20 per litre at retail fuel stations in Delhi, whereas bulk consumers had to pay around ₹134.50 per litre, creating a price gap of nearly ₹39 per litre. This encouraged transport operators, factories and telecom companies to increasingly purchase fuel from retail outlets, resulting in unusually high demand.

The pricing difference emerged because government-owned oil companies kept retail fuel prices unchanged to shield consumers from inflation despite rising international crude prices, while bulk fuel prices continued to remain market-linked.

Improved Gulf oil supplies

The government stated that easing geopolitical tensions in West Asia has helped restore crude oil shipments from Gulf producers. Shipping through the strategically important Strait of Hormuz has also normalised, strengthening India's domestic fuel stocks and improving supply across the country.

The Ministry of Petroleum said the latest decision was issued under its Special Powers Order, 2026, revoking the emergency notification issued earlier in June.

Transport and industries to benefit

The withdrawal of restrictions is expected to provide significant relief to the transportation, logistics, infrastructure and manufacturing sectors.

Truck operators, state transport buses and commercial fleet owners will no longer face purchase limits or additional logistical challenges, while factories and industrial consumers can resume buying fuel directly from retail outlets, simplifying procurement and reducing operational hurdles.