New Delhi: The Central Government has announced that it will lift temporary restrictions on petrol and diesel sales from July 1, bringing fuel distribution back to normal after emergency measures introduced earlier this month.
The restrictions were imposed on June 12 as a precaution after tensions linked to the US-Israel conflict with Iran and the temporary closure of the Strait of Hormuz raised fears of disruptions in global oil supplies.
Why Were the Restrictions Imposed?
The government kept retail fuel prices unchanged even as global crude oil prices increased. This made fuel at retail pumps cheaper than bulk supplies.
As a result, many commercial and industrial consumers started buying petrol and diesel from retail outlets. The shift increased pressure on fuel availability for ordinary consumers.
To manage the situation, the government stopped commercial and institutional users from purchasing fuel at retail outlets. It also limited diesel purchases to 200 litres per customer or vehicle per day.
Why Is the Government Removing the Curbs?
After reviewing the domestic fuel supply, the Petroleum Ministry said the situation has improved and emergency restrictions are no longer necessary.
The ministry said the temporary measures helped prevent hoarding, black marketing and diversion of fuel. They also ensured that petrol and diesel remained available for retail customers across the country.
From July 1, commercial consumers will once again be allowed to purchase petrol and diesel without the temporary restrictions.
Commercial LPG Supply Also Restored
The government has also restored commercial LPG supplies to normal levels after easing earlier restrictions.
Hotels, restaurants, bakeries and industries had faced reduced LPG supplies during the crisis and many switched to diesel and coal as alternatives.
With supplies stabilising, oil marketing companies have resumed full supplies of commercial LPG cylinders. The government has also partially relaxed restrictions on bulk LPG supplies.
However, businesses that have already shifted to Piped Natural Gas (PNG) will not be allowed to switch back to LPG, as the government continues to promote cleaner fuel.
The Centre said the decision reflects improved fuel availability and stable domestic supplies after weeks of precautionary measures.