Govt withdraws emergency gas supply curbs as LNG shipments via Strait of Hormuz resume

Published 5 July 2026 · india

The Centre has rolled back most provisions of the emergency natural gas supply regulations imposed during the West Asia conflict after liquefied natural gas (LNG)

The Centre has rolled back most provisions of the emergency natural gas supply regulations imposed during the West Asia conflict after liquefied natural gas (LNG) cargo movement through the Strait of Hormuz resumed following a ceasefire. In a notification issued on Saturday, the Ministry of Petroleum and Natural Gas amended the Natural Gas (Supply Regulation) Order, 2026, removing key operational provisions that had enabled the government to prioritise the allocation of domestically produced natural gas and imported LNG to essential consumers. The original order, issued on March 9 under the Essential Commodities Act, was introduced after the conflict in West Asia disrupted LNG shipments through the Strait of Hormuz. During the crisis, several suppliers invoked force majeure clauses and redirected cargoes, prompting the government to step in to secure supplies for priority sectors. According to the ministry, the situation has stabilised following the ceasefire, ongoing diplomatic negotiations and the restoration of maritime traffic through the strategically important Strait of Hormuz. "The ongoing conflict in the Middle East that had resulted in the disruption of liquefied natural gas shipments through the Strait of Hormuz has been subject to a ceasefire, and negotiations are ongoing, as part of which, sea traffic through the Strait of Hormuz has been permitted to be resumed," the notification said.

The gas supply restrictions formed one of three emergency measures announced after energy supplies from the Gulf came under threat due to the effective closure of the Strait of Hormuz following US and Israeli strikes on Iran on February 28 and Tehran's retaliatory response. The other two emergency measures—requiring refiners to maximise LPG production by diverting feedstock from petrochemical units and restricting diesel sales to bulk consumers—had already been withdrawn after fuel supplies returned to normal. India, the world's third-largest importer and consumer of crude oil, relies on imports for nearly 88 per cent of its crude oil demand and about half of its natural gas consumption. Around 40-45 per cent of India's crude oil imports and nearly 65 per cent of its LNG supplies originate from West Asia, highlighting the country's dependence on uninterrupted shipping through the Strait of Hormuz, a key transit route for Gulf energy exports. Concerns over disruptions along the waterway had prompted the government to invoke emergency powers in March to protect domestic fuel and gas availability.