Government Lifts Fuel Sale Restrictions: Petrol and Diesel Back to Normal from July 1

The decision comes after a thorough review of the domestic petroleum supply situation, which has now returned to normal following disruptions caused by the West Asia crisis earlier this year.

During the period of global price volatility, the Government took decisive steps to shield ordinary citizens from sharp spikes in international fuel prices. Retail prices of petrol and diesel were kept stable, creating a significant gap between pump prices and bulk consumer rates. This led to unintended consequences—some commercial and industrial users began purchasing fuel from retail outlets, resulting in hoarding, diversion, and black marketing.

To curb these malpractices and ensure equitable distribution, the government had introduced temporary measures on June 12, 2026. These included a daily cap of 200 litres of High Speed Diesel per customer or vehicle at retail outlets and a directive for industrial, institutional, and commercial consumers to source fuel only from designated consumer pumps.

“These measures successfully ensured uninterrupted availability of fuel for retail consumers while preventing misuse,” a Ministry statement noted. “With the supply situation now stabilised, the restrictions are no longer required in the public interest.”

The withdrawal of the order dated June 12 marks a return to normalcy at thousands of petrol pumps operated by public sector oil marketing companies. Consumers can now purchase petrol and diesel without quantity restrictions, and industries can resume regular procurement channels.

This development is expected to ease logistical challenges for the transport sector and bring convenience back to daily commuters. The Ministry has urged all stakeholders to maintain discipline and avoid any attempts at hoarding as the system transitions smoothly.