New Delhi, June 29 -- The government will lift a cap on diesel purchases at retail fuel pumps from 1 July, the Union petroleum ministry said, as the supply situation for crude oil and refined products eases following disruptions due to the West Asia war.

The ministry imposed a 200-litre-per-customer daily limit on 12 June after a supply squeeze triggered by the war and elevated bulk demand affected fuel availability. The restriction also barred institutional, industrial and commercial buyers from sourcing petrol and diesel at retail outlets, requiring them to draw fuel from assigned depots instead, which will also be waived off. Although the restriction was for both petrol and diesel, it was more effective in the case of diesel, as bulk ...