Petrol, diesel sale limits to be lifted from 1 July:Commercial buyers can purchase fuel from retail pumps; 200-litre daily cap to end

The government has decided to withdraw all emergency restrictions imposed on the purchase of petrol and diesel from 1 July. Under the new order, the limit of 200 litres of diesel per vehicle per day at petrol pumps has been removed. This means vehicle owners can now refill as much diesel as they require. The restrictions imposed on factories and commercial buyers have also been lifted. The Ministry of Petroleum had introduced these curbs on 11 June due to a fuel shortage. After supply conditions improved, the restrictions were withdrawn through a fresh order issued on 29 June. Over the past 18 days, large consumers had been allowed to purchase fuel only through bulk sale points. Here’s the entire decision explained in simple QA format: Q1: What is the government’s new decision on petrol and diesel? Answer: From 1 July, the government has completely removed the restrictions on commercial and industrial customers purchasing petrol and diesel. These buyers can now buy fuel from retail petrol pumps as usual. The daily cap of 200 litres of diesel per vehicle has also been scrapped. Q2: Why has the government removed the restrictions? Answer: The ministry reviewed the country’s petroleum supply situation and said fuel availability has now improved. Keeping public interest in mind, it concluded that the emergency restrictions are no longer necessary. Q3: Why were these restrictions imposed? Answer: The ongoing US-Iran conflict had disrupted global energy markets and crude oil supplies, raising concerns about fuel shortages in parts of India. To prevent black marketing, hoarding and diversion of diesel, the government imposed emergency restrictions on 11 June, which were originally meant to remain in force for 90 days. Q4: What rules applied to commercial buyers under the earlier order? Answer: Under the 11 June order, factories, industrial units, telecom tower operators and other large commercial consumers were barred from purchasing fuel at retail petrol pumps. They were required to procure fuel through their own consumer pumps at market prices. The government also imposed a 200-litre daily diesel purchase limit per customer or vehicle at retail outlets. Q5: Why had commercial buyers started crowding retail petrol pumps? Answer: A significant price gap had emerged between retail and bulk diesel prices. For example, in Delhi, diesel was available at ₹95.20 per litre at retail pumps, while bulk buyers had to pay ₹134.50 per litre—a difference of nearly ₹39 per litre. Because of this price advantage, telecom companies, factories and bus and truck operators increasingly shifted to retail petrol pumps, causing an unusual surge in demand. Q6: Why had such a large price difference emerged? Answer: After the West Asia crisis began in late February, global crude oil prices rose sharply. Government-owned oil companies kept retail fuel prices unchanged to shield consumers from inflation. However, market-linked prices continued to apply to bulk consumers such as telecom companies and heavy industries, resulting in a wide gap between retail and bulk fuel prices. Q7: What improvement has taken place in oil supplies from the Gulf? Answer: According to the government, easing tensions in the West Asia have improved crude oil and fuel supplies from Gulf producers. Shipping and oil movement through the Strait of Hormuz, the region’s most critical maritime route, have returned to normal, strengthening domestic fuel stocks. Q8: Under which rule did the government withdraw the order? Answer: The Ministry of Petroleum said it used its Special Powers Order, 2026 to revoke the earlier order issued on 12 June. The new decision will come into effect across the country from 1 July 2026. Q9: Which sectors will benefit the most from this decision? Answer: The transportation and logistics sector is expected to benefit the most. Trucking companies and state transport buses will no longer have to deal with long queues or the 200-litre daily diesel limit. Companies in the infrastructure and manufacturing sectors will also find it easier to procure fuel.