New Delhi: The central government said on Monday that it has decided to lift restrictions on sale and distribution of petrol and diesel from July 1. The development comes days after the United States (US) and Iran signed a framework to end the over three-month-long conflict that disrupted global supply chains.
In a notification issued this evening, the Ministry of Petroleum and Natural Gas said the decision to lift the temporary regulatory measures governing the sale and distribution of Motor Spirit (MS) and High Speed Diesel (HSD) was taken following a review meeting of the supply situation of petroleum products in India.
The ministry said restrictions were imposed due to the US-Iran conflict to shield retail consumers from hike in crude rates. Due to this move, there was a “significant price difference between retail fuel prices and those applicable to bulk consumers”, it said.
“Consequently, certain industrial, commercial and institutional consumers began procuring fuel through retail outlets, leading to instances of diversion, hoarding and black marketing, which affected the equitable distribution of fuel,” the ministry said.
To tackle this situation, the ministry said introduced the temporary regulatory measures on June 12, which prescribed a temporary limit of 200 litres of High Speed Diesel (HSD) per customer/ vehicle per day at retail outlets and required industrial, institutional and commercial consumers to procure fuel through designated consumer pumps instead of retail outlets.
This was done to prevent black marketing, hoarding and diversion of diesel.
“The temporary measures helped ensure adequate availability of petrol and diesel across the country while safeguarding the interests of retail consumers,” the ministry said. “Their withdrawal reflects the improvement in the supply situation and the restoration of normal supply arrangements.”
The global crude rates immediately fell by over 4 per cent earlier this month after the US and Iran signed the peace deal.
However, the rates increased again on Monday due to the recent exchange of fire between the two sides last week. Analysts have said that the impact on oil prices remains “relatively contained” despite the recent strikes; although the situation remains volatile as Iran wants to maintain its hold on the critical Strait of Hormuz.
