The Ministry of Petroleum and Natural Gas (MoPNG) has deregulated the sale and distribution of Motor Spirit (petrol) and High-Speed Diesel through retail outlets of public sector oil marketing companies with effect from July 1, 2026.

Amid the disruptions during the West Asia crisis, the government had kept retail fuel prices stable despite skyrocketing international prices to protect retail consumers. This resulted in a huge differential between the retail and bulk market prices, forcing some industrial, commercial, and institutional consumers to buy fuel from retail outlets, which led to diversion and hoarding activities and consequently had an adverse impact on the equitable distribution of fuel.

This was addressed by introducing temporary measures on June 12, 2026, which limited diesel consumption at retail outlets to 200 litres per person or vehicle per day and required industrial, institutional, and commercial consumers of diesel fuel to purchase diesel from PINs (industrial) or dedicated pump facilities (institutional/commercial) instead of retail outlets. These measures sought to prevent hoarding and distortions and to guarantee the continuity of fuel supply for retail customers.

The government conducted a review of the country's petroleum supply situation and decided that the temporary measures were no longer required in the public interest. Consequently, the June 12 Order has been cancelled with effect from July 1, 2026.

The temporary measures ensured that adequate fuel supplies were available nationwide and resulted in minimal impact on retail consumers during the crisis. Their withdrawal indicates improved supply conditions and the resumption of normal fuel supply arrangements.