The Indian government will remove the 200-litre daily cap on retail diesel purchases starting 1 July, the Union petroleum ministry announced. This decision follows an easing of supply constraints caused by the West Asia conflict and increased bulk demand, which had prompted the temporary restriction imposed on 12 June.
The ministry had introduced the daily diesel purchase limit on 12 June due to a supply squeeze triggered by the war in West Asia and a surge in bulk diesel demand. The cap was aimed at managing the limited availability of diesel at retail outlets amid the disrupted supply chain. However, the petroleum ministry stated that the supply situation has now improved, allowing the removal of the restriction.
The lifting of the diesel purchase cap comes as crude oil and refined product supplies stabilize after the disruptions linked to the West Asia war. The temporary limit had affected diesel availability for consumers and businesses, reflecting the broader impact of geopolitical tensions on fuel supplies. The move to restore normal purchase limits signals a return to steadier fuel distribution in the Indian market.
The daily diesel purchase cap will officially end on 1 July, according to the petroleum ministry's announcement on 29 June. This change is expected to ease fuel access for consumers and commercial users across India.