Government Lifts Restrictions on Diesel and Petrol Sales at PSU OMC Retail Outlets

The Indian government has announced the removal of restrictions on the sale of diesel and petrol at retail outlets operated by public sector undertakings (PSUs), effective July 1, 2026. This decision follows a significant easing of the supply situation in the wake of a 60-day sanctions waiver granted by the US to Iran, allowing the country to sell crude oil and refined products amidst ongoing conflict in West Asia. Earlier restrictions had limited diesel purchases to 200 liters per vehicle per day to curb black marketing and hoarding, but the recent review indicates a stable supply level that permits the lifting of these measures.

This policy change is expected to directly benefit the common citizen by providing less restricted access to fuel, potentially reducing black market activities and stabilizing prices at petrol stations. For the market, this shift indicates an improvement in the fuel supply chain, which could lead to more competitive pricing dynamics among retail fuel providers, including both public and private sector companies. A more stable supply of diesel and petrol could also positively impact logistics and transport sectors, enhancing overall economic activity as businesses resume normal fuel consumption patterns.