India To Remove Fuel Sale Restrictions From 1 July

India is planning to remove the temporary restrictions on petrol and diesel sales to commercial buyers from 1 July 2026. The restrictions were introduced earlier this month after conflict in the Middle East disrupted global fuel supply chains. Under the temporary measures, commercial users were not allowed to purchase petrol or diesel from retail fuel stations.

Diesel sales were also capped at 200 litres per vehicle or customer per day to discourage hoarding, curb misuse and ensure adequate fuel availability across the country.

Commercial Buyers To Resume Unrestricted Fuel Purchases

With supply conditions stabilising, the government has decided to withdraw the emergency measures. From 1 July, commercial users, including transport operators and industrial consumers, will once again be able to purchase petrol and diesel freely from retail fuel stations without quantity restrictions.

Retail Pumps Saw Higher Demand During The Curbs

The temporary curbs were imposed after a widening price gap between retail fuel and bulk diesel prompted many commercial consumers to switch to retail outlets. As bulk diesel became expensive, transport companies and other large users sourced fuel from retail pumps operated by state-owned oil marketing companies.

Diesel accounts for nearly 40% of India's total fuel consumption. During the restriction period, bulk diesel was priced ₹40 per litre above retail rates. The wide price gap prompted many commercial buyers to switch to retail fuel stations.

Also Read - SIS Plans ₹120 Crore Share Buyback, Sets Price At ₹478.50 Per Share

State-run fuel retailers, including Indian Oil Corporation and other public sector oil marketing companies, experienced a sharp rise in diesel sales during this period.

Collectively, they operate around 90% of India's more than 100,000 fuel stations. In contrast, private fuel retailers, which continued to sell diesel at prices closer to prevailing market rates, recorded weaker demand.