India to lift fuel sale curbs for commercial buyers from July 1

New Delhi: The Centre on Monday decided to withdraw temporary restrictions on the retail sale of petrol and diesel to commercial consumers from July 1, restoring normal fuel purchases for industrial, institutional and transport sector users after a brief period of curbs aimed at safeguarding domestic fuel supplies.

According to a government order, commercial buyers will once again be allowed to purchase petrol and diesel from retail fuel stations without quantity restrictions.

The move brings to an end measures introduced earlier this month amid concerns over disruptions in global energy trade and uneven fuel demand patterns.

The restrictions, imposed through the Motor Spirit and High-Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026 on June 12, had barred industrial, institutional and commercial consumers from buying fuel from retail outlets. The order had also capped diesel sales at 200 litres per customer or vehicle per day.

With the withdrawal of these measures, transport operators, industrial users and other commercial consumers will be able to resume fuel purchases from retail outlets without any limitations.

When the restrictions were introduced, the Ministry of Petroleum and Natural Gas had said the measures were intended to prevent black marketing, curb hoarding of diesel and stop the diversion of fuel supplies from retail outlets. The ministry had clarified that the curbs were temporary in nature and could remain in force for up to 90 days if necessary.

Officials had also emphasized that the restrictions did not indicate any shortage of petrol or diesel in the country and were not meant to ration fuel supplies.

The government had cited unusual demand patterns at several fuel stations as a key reason for the temporary measures. According to the ministry, a number of industrial and bulk diesel consumers had shifted their purchases from dedicated consumer pumps to retail outlets operated by public sector oil marketing companies.

The shift was driven largely by a significant price difference between retail and bulk diesel supplies. The ministry said retail diesel prices were around Rs 40 per litre lower than bulk diesel prices, as bulk supplies continued to reflect international market trends.

IANS