Government withdraws emergency gas curbs imposed during Hormuz disruption as LNG supplies normalise

Published 5 July 2026 · politics

The government has withdrawn most provisions of the emergency natural gas supply regulation order imposed during the West Asia conflict after liquefied natural gas (LNG)

The government has withdrawn most provisions of the emergency natural gas supply regulation order imposed during the West Asia conflict after liquefied natural gas (LNG) shipments through the Strait of Hormuz resumed following a ceasefire. In a notification issued on Saturday (July 4, 2026), the Ministry of Petroleum and Natural Gas amended the Natural Gas (Supply Regulation) Order, 2026, omitting key operational provisions, which led to all domestically produced natural gas and imported LNG to be sold as per a new priority customer list drawn by the government. The original order, issued on March 9 under the Essential Commodities Act, was brought in after the conflict in West Asia disrupted LNG shipments through the Strait of Hormuz, with suppliers invoking force majeure and diverting cargoes to priority consumers. The Ministry said the situation has since improved, with a ceasefire in place, negotiations underway and maritime traffic through the Strait of Hormuz resuming. The gas supply curbs were one of three emergency measures the government introduced after energy supplies from the Gulf were threatened by the effective closure of the Strait of Hormuz, following US and Israeli strikes on Iran on February 28 and Tehran's retaliatory attacks.

The other two measures — directing refiners to maximise LPG production by diverting feedstock from petrochemicals and restricting diesel sales to bulk consumers — have already been withdrawn as the supply situation normalised. India, the world's third-largest oil importer and consumer, imports about 88% of its crude oil requirements and around half of its natural gas needs. About 40-45% of its crude oil imports and nearly 65 per cent of its liquefied natural gas (LNG) supplies come from West Asia, underscoring the country's vulnerability to disruptions in the Strait of Hormuz, through which most Gulf energy exports are shipped. The threat to traffic through the waterway prompted the government to invoke emergency powers in March to safeguard domestic fuel and gas supplies. While India diversified crude oil purchases by sourcing supplies from other producers, natural gas imports remained exposed because most LNG cargoes from Qatar pass through the Strait of Hormuz. The disruption led some suppliers to invoke force majeure, prompting the government to introduce emergency measures to prioritise gas supplies to essential sectors. The March order empowered the government to direct sector-wise allocation and diversion of domestic gas, LNG and regasified LNG to ensure uninterrupted supplies to priority consumers after suppliers invoked force majeure clauses amid the West Asia crisis.