From July 1, 2026, commercial buyers in India will again be able to buy petrol and diesel from regular fuel stations without any limits or quotas. The government has withdrawn all restrictions that were earlier placed on retail fuel sales to commercial users.
This brings a return to normal supply conditions across the country. The decision is expected to ease operations for transport operators, logistics companies and industrial users who had been working under capped purchase rules for several weeks.
Why restrictions were introduced
The limits were introduced in June after worries over crude oil supply disruptions in international markets. Tensions in the Middle East had affected shipping routes and crude movement, including risks involving the Strait of Hormuz.
With fears of fuel shortages, the government stepped in to stop hoarding and keep petrol and diesel available for essential sectors and households. At the same time, different pricing between wholesale and retail fuel markets made the situation worse.
Industry buyers were paying diesel prices that were nearly Rs 40 per litre higher in the wholesale segment compared to retail pump rates. This difference pushed several transport operators and big buyers to move their purchases to retail outlets.
Higher load on retail fuel stations
The change in buying patterns led to a sudden rise in demand at public fuel stations. Large commercial vehicles, tankers and containers began queuing at retail pumps. In some areas, reports of diesel being stored in containers for resale also emerged.
To control the situation, the government had earlier capped commercial fuel purchases at 200 litres per vehicle per day and restricted bulk buying from retail pumps. The aim was to prevent uneven distribution and ensure that retail supply for regular consumers was not affected.
Situation stabilises
With international and domestic supply conditions improving, the government has now decided to remove these restrictions. Officials have stated that fuel availability in the country has returned to stable levels; and therefore, the emergency controls are no longer necessary.
The earlier notification issued in June has been withdrawn, clearing the way for unrestricted retail fuel purchases by commercial users.
Relief for transport and industry
The rollback is expected to bring relief to the logistics and transport sector, which depends on constant diesel supply for daily operations. Truck operators, fleet owners and industrial users will not need to depend on capped retail purchases or deal with wholesale-retail price differences.
With the removal of limits, fuel distribution is expected to return to its regular market-driven pattern, reducing operational hurdles for large users across the country.
