In a major reform aimed at improving ease of doing business and reducing regulatory hurdles in the fuel retail sector, the Odisha government has decided to repeal the decades-old licensing system governing the retail sale of High-Speed Diesel (HSD) in the state.

The decision was taken following approval by the state Cabinet and will come into effect through a fresh notification titled “The Odisha High Speed Diesel (Dealers’ Licensing) Repeal Order, 2026.” With this move, the government will repeal “The Odisha High Speed Diesel (Dealers’ Licensing) Order, 1979,” which had remained in force for nearly five decades under the provisions of the Essential Commodities Act, 1955.

According to the Food Supplies and Consumer Welfare Department, the reform has been introduced in line with recommendations issued by the Ministry of Petroleum and Natural Gas, which advised states and Union Territories to abolish the requirement of Retail Sale Licences (RSL) for High-Speed Diesel outlets. The Centre had urged states to remove unnecessary regulatory barriers and simplify approval mechanisms to encourage investment and business growth in the petroleum sector.

Under the earlier system, fuel retail outlets were required to obtain a Retail Sale Licence in addition to multiple departmental clearances before commencing operations. However, under the revised framework, retail fuel outlets will no longer need a separate diesel retail sale licence from the state government.

Officials clarified that petrol pumps and diesel retail outlets will continue to require a No Objection Certificate (NOC) from the district Collector and District Magistrate before establishment. The NOC process itself already includes mandatory clearances from departments such as Fire Services, Works, Revenue and the Petroleum and Explosives Safety Organisation (PESO).

As these approvals are already part of the existing process, the state government felt that requiring separate licensing and repeated clearances created duplication and delayed business operations. With the repeal order, retail outlet operators will not have to undergo the same clearance procedures again for obtaining diesel sale licences.

The state government believes the decision will significantly simplify administrative procedures, reduce paperwork, speed up approvals and create a more liberalised and investor-friendly environment in Odisha’s petroleum retail sector.

At the same time, officials stressed that regulatory oversight on the sale and distribution of High-Speed Diesel will continue under the Essential Commodities Act, 1955. This means authorities will still retain powers to monitor supply, prevent hoarding and ensure fair distribution of diesel across the state.

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The reform is being viewed as part of Odisha’s broader push towards administrative simplification and business-friendly governance, particularly in sectors involving infrastructure, energy and retail investment.