**Executive Summary**
The Ministry of Petroleum and Natural Gas has announced the withdrawal of temporary regulatory measures on the sale and distribution of Motor Spirit (MS) and High Speed Diesel (HSD). Originally implemented on June 12, 2026, to manage supply disruptions, these restrictions will officially cease to be in effect from July 1, 2026. The decision follows a government review confirming the restoration of normal supply arrangements and an improved petroleum supply situation.
**Key Points / Main Content**
**Policy Withdrawal and Effective Date**
* The government is withdrawing the regulatory measures governing fuel sales through Public Sector Oil Marketing Companies' retail outlets.
* The Order dated June 12, 2026, is officially rescinded effective July 1, 2026.
**Background and Original Objectives**
* Restrictions were introduced during the West Asia crisis to shield retail consumers from high international prices and maintain stable domestic retail prices.
* The measures aimed to address the significant price gap between retail and bulk fuel, which had led to hoarding, black marketing, and the diversion of fuel.
* The primary goal was to ensure equitable distribution and uninterrupted fuel availability for retail consumers.
**Removed Restrictions**
* The temporary limit of 200 litres of High Speed Diesel (HSD) per customer/vehicle per day at retail outlets is now removed.
* Industrial, institutional, and commercial consumers are no longer mandated to procure fuel exclusively through designated consumer pumps and may return to normal procurement channels.
**Rationale for Change**
* A government review determined that regulatory measures are no longer required in the public interest.
* The withdrawal marks a return to normal supply conditions across the country.
**Impact Analysis**
**Public Sector Oil Marketing Companies (OMCs)**
**Impact**
They are no longer required to enforce daily purchase limits or restrict bulk consumers at retail outlets.
**Action Required**
Revert to standard operating procedures for the sale and distribution of MS and HSD starting July 1, 2026.
**Industrial, Commercial, and Institutional Consumers**
**Impact**
These entities are released from the requirement to use only designated consumer pumps.
**Action Required**
Can resume procuring fuel through retail outlets or previous supply arrangements without the 200-litre HSD daily restriction.
**Retail Consumers**
**Impact**
Normal access to petrol and diesel is restored without the daily 200-litre HSD cap.
**Action Required**
No specific action required; consumers can now purchase fuel as per normal requirements.
Key Entities Referenced
Ministry of Petroleum and Natural Gas: The central government body responsible for the withdrawal of temporary regulatory measures on fuel distribution.
Order dated 12th June, 2026: The specific regulatory directive that introduced limits on High Speed Diesel sales and is being rescinded.
Public Sector Oil Marketing Companies: The state-owned entities whose retail outlet operations were subject to the temporary sale and distribution restrictions.
High Speed Diesel (HSD): A primary fuel product that was subject to a daily sale limit of 200 litres per customer to prevent hoarding and diversion.
Motor Spirit (MS): Commonly known as petrol, one of the two key petroleum products whose retail distribution is being normalized under this notification.
Ministry of Petroleum & Natural Gas
Government withdraws temporary restrictions on
sale and distribution of Petrol and Diesel
प्रव तथ: 29 JUN 2026 8:00PM by PIB Delhi
The Ministry of Petroleum and Natural Gas has withdrawn the temporary regulatory measures governing
the sale and distribution of Motor Spirit (MS) and High Speed Diesel (HSD) through retail outlets of
Public Sector Oil Marketing Companies with effect from 1st July, 2026.
During the period of disruptions arising from the West Asia crisis, the Government continued to shield
retail consumers from the sharp increase in international fuel prices by maintaining stable retail prices of
petrol and diesel. This led to a significant price difference between retail fuel prices and those applicable
to bulk consumers. Consequently, certain industrial, commercial and institutional consumers began
procuring fuel through retail outlets, leading to instances of diversion, hoarding and black marketing,
which affected the equitable distribution of fuel.
To address this situation, the temporary regulatory measures, introduced on 12th June, 2026, prescribed a
temporary limit of 200 litres of High Speed Diesel (HSD) per customer/vehicle per day at retail outlets
and required industrial, institutional and commercial consumers to procure fuel through designated
consumer pumps instead of retail outlets. The measures were aimed at preventing black marketing,
hoarding and diversion of diesel while ensuring uninterrupted availability of petrol and diesel to retail
consumers.
Following a review of the supply situation of petroleum products in the country, the Government has
concluded that the temporary regulatory measures are no longer required in the public interest.
Accordingly, the Order dated 12th June, 2026 stands withdrawn with effect from 1st July, 2026.
The temporary measures helped ensure adequate availability of petrol and diesel across the country while
safeguarding the interests of retail consumers. Their withdrawal reflects the improvement in the supply
situation and the restoration of normal supply arrangements.
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TM
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