Page 55 - Policy Economic Report- June'26

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

7. Government withdraws temporary restrictions on sale and distribution of Petrol and Diesel

The Ministry of Petroleum and Natural Gas has withdrawn the temporary regulatory measures governing
the sale and distribution of Motor Spirit (MS) and High Speed Diesel (HSD) through retail outlets of Public
Sector Oil Marketing Companies with effect from 1st July, 2026.

During the period of disruptions arising from the West Asia crisis, the Government continued to shield
retail consumers from the sharp increase in international fuel prices by maintaining stable retail prices of
petrol and diesel. This led to a significant price difference between retail fuel prices and those applicable
to bulk consumers. 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.

To address this situation, the temporary regulatory measures, introduced on 12th June, 2026, 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. The measures were aimed at preventing black marketing,
hoarding and diversion of diesel while ensuring uninterrupted availability of petrol and diesel to retail
consumers.

Following a review of the supply situation of petroleum products in the country, the Government has
concluded that the temporary regulatory measures are no longer required in the public interest.
Accordingly, the Order dated 12th June, 2026 stands withdrawn with effect from 1st July, 2026.

The temporary measures helped ensure adequate availability of petrol and diesel across the country while
safeguarding the interests of retail consumers. Their withdrawal reflects the improvement in the supply
situation and the restoration of normal supply arrangements.

8. India Hosted the 11th BRICS Energy Ministers' Meeting in Gurugram under BRICS Chairship 2026

The 11th BRICS Energy Ministers’ Meeting was successfully convened on 25 June 2026 in Gurugram,
Haryana, under India’s BRICS Chairship 2026 under the overarching theme “Building for Resilience,
Innovation, Cooperation and Sustainability.”

The meeting brought together Energy Ministers, Vice Ministers, and senior officials from BRICS member
countries to deliberate on key global energy challenges and opportunities and to advance practical
cooperation across the energy sector. Representatives from leading international organizations, including
the International Solar Alliance (ISA), the Global Biofuels Alliance (GBA) the New Development Bank
(NDB), also participated in the deliberations.

Guided by the Energy Track theme “?????? ?????? (Energy for All)”, the discussions focused on three priority
areas:

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