The Ministry of Petroleum and Natural Gas has withdrawn temporary regulatory measures governing the sale and distribution of Motor Spirit (MS) and High Speed Diesel (HSD) through retail outlets of Public Sector Oil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, effective from July 1, 2026. The order dated June 12, 2026, which imposed these restrictions, stands withdrawn following a review of the petroleum products supply situation in the country.
The temporary measures were originally implemented during disruptions arising from the West Asia crisis, when the government shielded retail consumers from sharp increases in international fuel prices by maintaining stable retail prices. This created a significant price difference between retail and bulk consumer prices, leading industrial, commercial and institutional consumers to procure fuel through retail outlets, resulting in diversion, hoarding and black marketing that affected equitable fuel distribution.
The regulatory measures prescribed a temporary limit of 200 litres of High Speed Diesel 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. These measures were aimed at preventing black marketing, hoarding and diversion of diesel while ensuring uninterrupted availability of petrol and diesel to retail consumers.
The government concluded that the temporary regulatory measures are no longer required in the public interest, with the withdrawal reflecting the improvement in the supply situation and the restoration of normal supply arrangements. The temporary measures helped ensure adequate availability of petrol and diesel across the country while safeguarding the interests of retail consumers during the period of market disruption.