The sanctions waiver follows the signing of an MoU between the US and Iran to stop the conflict in West Asia
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The government on Monday removed the restrictions placed on sale of diesel and petrol at retail outlets (ROs) operated by PSU oil marketing companies (OMCs), including the cap of 200 litres per day per vehicle on diesel, with effect from July 1.The latest order follows the relaxation in supply of LPG to commercial users last week, after the US announced a 60-day sanctions reprieve for Iran to sell crude oil, and refined products. The sanctions waiver follows the signing of the MoU between the US and Iran to stop the conflict in West Asia, which has been raging since February 28, 2026.“The Central Government on review of the prevailing supply situation of petroleum products in the country is satisfied that it is no longer necessary in the public interest to continue with the directions contained in the said Order (June 12, 20256 order). The Central Government hereby withdraws, its order with effect from July 1, 2026,” said a government order.On June 12, the government directed retail fuel outlets to sell up to 200 litres of diesel per person per day to curb black marketing and hoarding by unscrupulous elements. Besides, industrial and commercial users of diesel, also called bulk users, could not purchase petrol and diesel from retail outlets.The government imposed the restrictions earlier this month as bulk diesel sales shifted to ROs eating into the supply for retail consumers. Besides, sales from private OMC-operated ROs also shifted to PSU OMC pumps exacerbating panic buying and shortage issues.import scenarioThe West Asia crisis and the closure of the Strait of Hormuz (SoH) impacted imports of crude oil, liquefied natural gas (LNG) and liquefied petroleum gas (LPG). Imports account for 85 per cent of India’s crude oil supply and 50 per cent LNG usage and 60 per cent of LPG consumption.The Government said that private OMC sales exhibited a decline of around 58 per cent in diesel sales during May 2026 due to higher prices fixed by them. Besides, May 2026 data, compared with the corresponding period last year, reveals a significant surge in diesel sales through PSU OMCs’ retail outlets, with 327 districts recording more than 10 per cent growth, and 80 districts exceeding 30 per cent.Bulk industrial and commercial users diverted as much as 3.50 lakh tonnes of the key transport fuel in May 2026.Last week, the government, in a clear sign that fuel supplies have normalised following the US-Iran crisis, removed all restrictions on supply of liquefied petroleum gas (LPG) to the commercial and industrial sectors.Published on June 29, 2026
