The Centre will lift temporary restrictions on the sale of petrol and diesel from July 1. This ends emergency measures introduced earlier this month to safeguard domestic fuel supplies amid disruptions led by the US-Israeli war on Iran and the closure of the Strait of Hormuz.
The curbs, imposed as a precaution against potential supply shortages, had barred commercial consumers from buying petrol and diesel at retail fuel stations.
Authorities had also placed a daily limit on diesel purchases to ensure adequate availability for the general public. The curbs were imposed amid fears that the US-Israeli war on the Gulf could disrupt global energy supply chains and affect fuel availability.
Why the Centre is lifting the restrictions
The Centre imposed the restrictions on June 12. By keeping retail petrol and diesel prices unchanged despite rising global fuel prices, it created a wider gap between retail and bulk rates. This, in turn, led to industrial, commercial and institutional consumers to purchase fuel from retail outlets.
According to a statement by the petroleum ministry, the limitations led to instances of diversion, hoarding and black marketing. This was affecting the equitable distribution of fuel across the country.
{{/usCountry}}According to a statement by the petroleum ministry, the limitations led to instances of diversion, hoarding and black marketing. This was affecting the equitable distribution of fuel across the country.
{{/usCountry}}To address the situation, the Centre barred commercial and institutional consumers from purchasing petrol and diesel through retail fuel stations, directing them to designated consumer pumps instead. It also capped diesel purchases at 200 litres per customer or vehicle per day at retail outlets to ensure uninterrupted supplies for retail consumers.
Following a review of the domestic supply situation, the government said the temporary measures were no longer required in the public interest and would be withdrawn from Wednesday.
The ministry said the restrictions had helped maintain adequate availability of petrol and diesel across the country while protecting retail consumers during the period of supply uncertainty.
Commercial LPG supply restored
Last week, the Centre restored commercial LPG supplies to pre-crisis levels. The ministry said that they withdrew temporary restrictions imposed in March after the war by US and Israel disrupted global energy supply chains.
The restrictions, introduced to prioritise household cooking gas supplies, had reduced allocations for commercial consumers, forcing hotels, restaurants, bakeries and industries to switch to diesel and coal-based alternatives.
With supplies stabilising, the government directed oil marketing companies to resume full supplies of non-domestic packed LPG cylinders and partially relaxed bulk LPG restrictions, allowing consumption up to 50% of pre-crisis levels.
Commercial and industrial consumers that have already shifted to Piped Natural Gas (PNG) will not be allowed to switch back to LPG, as the government continues to promote PNG adoption.