The government on Monday announced that from July 1 it will lift restrictions on state-run oil companies selling auto fuel to wholesale consumers and scrap the 200 liter per vehicle daily limit for diesel sales.
The sanctions were imposed against the backdrop of severe disruption in global energy supplies caused by the blockade of the Strait of Hormuz on June 12 and a wide gap between retail fuel prices and those applied to wholesale consumers.
The temporary measures helped ensure adequate availability of petrol and diesel across the country while protecting the interests of retail consumers. Their return reflects the improvement in the supply situation and restoration of normal supply arrangements, the government said in a statement on Monday.
“The government continued to protect retail consumers from the sharp rise in international fuel prices by maintaining stable retail prices of petrol and diesel. This led to a significant gap between retail fuel prices and the prices applicable to wholesale consumers. As a result, some industrial, commercial and institutional consumers started purchasing fuel through retail outlets, leading to incidents of diversion, hoarding and black marketing, affecting equitable distribution of fuel,” the ministry statement said.
To deal with this situation, temporary regulatory measures were introduced on June 12. As part of this exercise, the government directed industrial, institutional and commercial consumers to purchase fuel only through designated consumer pumps instead of retail outlets.
“The measures were aimed at preventing black marketing, hoarding and diversion of diesel while ensuring uninterrupted availability of petrol and diesel to retail consumers,” it said.
“After reviewing the supply situation of petroleum products in the country, the Government has concluded that temporary regulatory measures are no longer required in the public interest. Accordingly, the order dated June 12, 2026 is withdrawn with effect from July 1, 2026.”
Monday’s announcement comes days after the government lifted the ban on commercial supply of liquefied petroleum gas (LPG) cylinders on June 25 and eased restrictions on the sale of bulk LPG to industrial customers.
The government said last week that bulk LPG supplies, which were suspended at the beginning of the energy crisis, have been reduced to 50% of pre-crisis consumption levels. Packed LPG refers to 19 kg cylinders commonly used by hotels, restaurants and commercial units. Industries consuming more than 50 tonnes per month usually have bulk LPG facilities at their premises.
