The government is lifting restrictions on the purchase of diesel with effect from July 1 | Today’s news
New Delhi: The government will lift restrictions on diesel purchases at retail petrol stations from July 1, the Union Petroleum Ministry said, as the supply situation for crude and refined products eases after disruptions due to the West Asia war.
The ministry introduced a daily limit of 200 liters per customer on June 12 after war-induced supply cuts and increased bulk demand affected fuel availability. The restriction also prohibited institutional, industrial and commercial buyers from purchasing gasoline and diesel at retail outlets, requiring them to instead draw fuel from allocated storage facilities., which will also be waived. Although the restriction applied to both petrol and diesel, it was more effective in the case of diesel, as the bulk purchase of petrol by a consumer is usually less than 200 litres.
In an order issued on Monday, the government said it was “no longer necessary in the public interest” to keep the curbs in place and withdrew the June directive effective July 1. The ministry attributed the turnaround to improved supply conditions and a return to normal distribution.
The cap pushed a wave of industrial and commercial buyers toward retail pumps where diesel was sold nearby ₹95 per litre, compared to more than ₹130 liters for high-volume industrial deliveries, which the ministry says is a gap that encourages diversion, hoarding and black marketing. Diesel accounts for roughly 39% of India’s total consumption of petroleum products; the country sold 94.7 million tonnes of diesel in FY26 out of 243.19 million tonnes of total product sales.
Mint earlier said the regulation restricting the sale of diesel at retail gas stations may pose challenges for farmers during the ongoing process kharif season, especially in regions dependent on irrigation pumps and agricultural machinery. It also affected the operation of medium-sized, small and micro-enterprises (MSMEs) that rely on diesel, as reported by Mint.
The restrictions were imposed amid supply constraints caused by the war in West Asia and the closure of the Strait of Hormuz. Although the government claimed that the country’s petrol, diesel and oil reserves are sufficient, with extensive diversification in oil extraction.
“During the period of blackouts caused by the West Asian crisis, the government continued to protect retail consumers from the sharp rise in international fuel prices by keeping retail petrol and diesel prices stable. This led to a significant price differential between retail fuel prices and wholesale prices. As a result, some industrial, commercial and institutional consumers began to purchase fuel through retail outlets, leading to cases of fuel diversion, fuel hoarding and black marketing,” the ministry said. statement on Monday.
The statement added: “The temporary measures have helped ensure adequate availability of petrol and diesel across the country while protecting the interests of retail consumers. Their withdrawal reflects the improvement in the supply situation and the resumption of normal supply regime.”
Diesel has the largest share (almost 39%) of the total consumption of petroleum products in the country. In FY26, India sold a total of 94.7 million tonnes of diesel out of 243.19 million tonnes of product sales.
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The restrictions were imposed amid supply constraints due to the war in West Asia and the closure of the Strait of Hormuz. Although the government has claimed that the country’s petrol, diesel and crude oil reserves are adequate with sufficient diversification of oil sources.
With industrial diesel prices over ₹130 per litre, a large number of commercial and industrial buyers have shifted to the retail pumps where prices hover around ₹95.
“During the period of blackouts caused by the West Asian crisis, the government continued to protect retail consumers from the sharp rise in international fuel prices by keeping retail petrol and diesel prices stable. This led to a significant price differential between retail fuel prices and wholesale prices. As a result, some industrial, commercial and institutional consumers began to purchase fuel through retail outlets, leading to cases of fuel diversion, fuel hoarding and black marketing,” the ministry said. statement on Monday.
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The statement added: “The temporary measures have helped ensure adequate availability of petrol and diesel across the country while protecting the interests of retail consumers. Their withdrawal reflects the improvement in the supply situation and the resumption of normal supply regime.”
Diesel fuel has the highest share (almost 39%) of the total consumption of petroleum products in the country. In FY26, India sold a total of 94.7 million tonnes of diesel out of 243.19 million tonnes of product sold.
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