Hormuz back on track: Govt withdraws emergency gas curbs as LNG supplies resume
Emergency measures are no longer necessary as the conflict has eased, says Ministry of Petroleum
- Jul 5, 2026,
- Updated Jul 5, 2026 11:28 AM IST
The Centre has withdrawn most provisions of the emergency natural gas supply regulation order imposed during the West Asia conflict after liquefied natural gas (LNG) shipments through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, the Ministry of Petroleum and Natural Gas amended the Natural Gas (Supply Regulation) Order, 2026, removing key operational provisions that had allowed the government to regulate the sale and allocation of domestically produced natural gas and imported LNG under a priority customer framework.
The ministry said the emergency measures were no longer necessary as the conflict had eased, a ceasefire was in place, negotiations were underway, and maritime traffic through the Strait of Hormuz had resumed.
"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 resume," the notification said.
Following this, the government is "omitting" parts of the March 9 emergency order that prioritised all available gas supplies, it added.
Emergency Curbs Followed Hormuz Disruption
The original order, issued on March 9 under the Essential Commodities Act, came after the West Asia conflict disrupted LNG shipments through the Strait of Hormuz, with suppliers invoking force majeure and diverting cargoes to priority consumers.
The gas supply restrictions were among three emergency measures introduced after energy supplies from the Gulf came under threat following the effective closure of the Strait of Hormuz by Iran.
Tehran restricted the traffic in Hormuz after the US and Israel launched strikes on Iran on February 28.
The other two measures - directing refiners to maximise LPG production by diverting feedstock from petrochemicals and restricting diesel sales to bulk consumers - had already been withdrawn as the supply situation normalised.
Priority Supply Framework
Under the March order, the government was empowered to direct sector-wise allocation and diversion of domestic gas, imported LNG and regasified LNG to ensure uninterrupted supplies to priority consumers after suppliers invoked force majeure clauses.
Supplies to piped natural gas (PNG) households, compressed natural gas (CNG) for transport, LPG production, and pipeline operations were maintained at 100 per cent of their average consumption over the previous six months.
Fertiliser plants were assured 70 per cent of their average gas requirement, while industrial consumers connected to the national gas grid and city gas distribution networks were guaranteed 80 per cent of their average consumption, subject to operational availability.
To meet these priorities, the government authorised the curtailment of gas supplies to petrochemical plants and power stations, while directing oil refiners to reduce gas consumption to around 65 per cent of their average use wherever operationally feasible.
State-run GAIL, in coordination with the Petroleum Planning and Analysis Cell (PPAC), was tasked with pooling and redistributing gas supplies, notifying a pooled price for diverted gas, and overseeing revised allocation schedules.
Gas producers, LNG importers, marketers, pipeline operators, and city gas distributors were directed to comply with revised supply schedules, with the emergency provisions overriding existing gas sale agreements and other commercial contracts.
India's Dependence On Gulf Energy
India, the world's third-largest importer and consumer of crude oil, imports about 88 per cent of its crude oil requirement and around half of its natural gas demand.
Around 40-45 per cent of the country's crude oil imports and nearly 65 per cent of its LNG supplies come from West Asia, highlighting its dependence on the Strait of Hormuz.
While India diversified crude oil purchases during the crisis by sourcing supplies from other producers, natural gas imports remained particularly vulnerable because most LNG cargoes from Qatar pass through Hormuz.
The Centre 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, the Ministry of Petroleum and Natural Gas amended the Natural Gas (Supply Regulation) Order, 2026, removing key operational provisions that had allowed the government to regulate the sale and allocation of domestically produced natural gas and imported LNG under a priority customer framework.
The ministry said the emergency measures were no longer necessary as the conflict had eased, a ceasefire was in place, negotiations were underway, and maritime traffic through the Strait of Hormuz had resumed.
"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 resume," the notification said.
Following this, the government is "omitting" parts of the March 9 emergency order that prioritised all available gas supplies, it added.
Emergency Curbs Followed Hormuz Disruption
The original order, issued on March 9 under the Essential Commodities Act, came after the West Asia conflict disrupted LNG shipments through the Strait of Hormuz, with suppliers invoking force majeure and diverting cargoes to priority consumers.
The gas supply restrictions were among three emergency measures introduced after energy supplies from the Gulf came under threat following the effective closure of the Strait of Hormuz by Iran.
Tehran restricted the traffic in Hormuz after the US and Israel launched strikes on Iran on February 28.
The other two measures - directing refiners to maximise LPG production by diverting feedstock from petrochemicals and restricting diesel sales to bulk consumers - had already been withdrawn as the supply situation normalised.
Priority Supply Framework
Under the March order, the government was empowered to direct sector-wise allocation and diversion of domestic gas, imported LNG and regasified LNG to ensure uninterrupted supplies to priority consumers after suppliers invoked force majeure clauses.
Supplies to piped natural gas (PNG) households, compressed natural gas (CNG) for transport, LPG production, and pipeline operations were maintained at 100 per cent of their average consumption over the previous six months.
Fertiliser plants were assured 70 per cent of their average gas requirement, while industrial consumers connected to the national gas grid and city gas distribution networks were guaranteed 80 per cent of their average consumption, subject to operational availability.
To meet these priorities, the government authorised the curtailment of gas supplies to petrochemical plants and power stations, while directing oil refiners to reduce gas consumption to around 65 per cent of their average use wherever operationally feasible.
State-run GAIL, in coordination with the Petroleum Planning and Analysis Cell (PPAC), was tasked with pooling and redistributing gas supplies, notifying a pooled price for diverted gas, and overseeing revised allocation schedules.
Gas producers, LNG importers, marketers, pipeline operators, and city gas distributors were directed to comply with revised supply schedules, with the emergency provisions overriding existing gas sale agreements and other commercial contracts.
India's Dependence On Gulf Energy
India, the world's third-largest importer and consumer of crude oil, imports about 88 per cent of its crude oil requirement and around half of its natural gas demand.
Around 40-45 per cent of the country's crude oil imports and nearly 65 per cent of its LNG supplies come from West Asia, highlighting its dependence on the Strait of Hormuz.
While India diversified crude oil purchases during the crisis by sourcing supplies from other producers, natural gas imports remained particularly vulnerable because most LNG cargoes from Qatar pass through Hormuz.