Govt Withdraws Emergency Gas Supply Curbs As LNG Imports Through Hormuz Resume

New Delhi, July 5: The Centre has withdrawn most provisions of the emergency natural gas supply regulation order introduced during the West Asia conflict, following the resumption of liquefied natural gas (LNG) shipments through the Strait of Hormuz after 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 emergency provisions that had allowed the government to prioritise the allocation of domestically produced natural gas and imported LNG to essential sectors. The emergency 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, with several suppliers invoking force majeure and diverting cargoes. According to the ministry, the situation has improved significantly following the ceasefire, ongoing negotiations and the restoration of maritime traffic through the strategic waterway. The gas supply restrictions were among three emergency measures introduced after energy supplies from the Gulf came under threat due to the effective closure of the Strait of Hormuz following U.S. and Israeli strikes on Iran and Tehran’s subsequent retaliation. The other two measures—maximising LPG production by diverting petrochemical feedstock and restricting diesel sales to bulk consumers—had already been withdrawn as supplies normalised. India, the world’s third-largest importer and consumer of crude oil, imports nearly 88 per cent of its crude oil requirements and about half of its natural gas demand. Around 40-45 per cent of crude oil imports and nearly 65 per cent of LNG supplies originate from West Asia, making the country particularly vulnerable to disruptions in the Strait of Hormuz. Although India diversified crude oil sourcing during the crisis, LNG imports remained heavily dependent on shipments from Qatar passing through the strategic waterway. The disruption prompted the government to invoke emergency powers to ensure uninterrupted supplies to priority sectors. Under the March order, the government was empowered to regulate sector-wise allocation of domestic gas, LNG and regasified LNG. Priority was given to piped natural gas (PNG) households, compressed natural gas (CNG) for transport, LPG production and pipeline operations, while fertiliser plants and industrial consumers were guaranteed reduced but assured supplies. The emergency provisions also allowed curtailment of gas supplies to petrochemical units and power plants, with state-run GAIL coordinating pooled gas distribution and revised allocation schedules. With maritime traffic through the Strait of Hormuz restored and the regional situation stabilising, the government said the emergency restrictions were no longer necessary and has withdrawn the key provisions of the order.