India withdraws gas curbs as Middle East LNG supply resumes
The ministry said the emergency rules are no longer needed as a ceasefire holds and LNG shipments through the Strait of Hormuz have resumed.
- On Saturday, July 4, 2026, The Ministry in India withdrew most emergency Natural Gas supply regulations. This policy shift follows the resumption of LNG shipments through the Strait of Hormuz, which had previously faced significant disruptions.
- The March order, introduced under the Essential Commodities Act, previously prioritized domestic supplies after the West Asia conflict disrupted shipments. The Ministry mandated strict allocation schedules for essential sectors to maintain stable energy flows during the crisis.
- India imports about 88 per cent of crude oil and nearly 65 per cent of LNG from West Asia. This dependency creates significant vulnerability to disruptions in the Strait of Hormuz, through which most energy exports transit.
- A ceasefire in the Middle East has allowed maritime traffic to resume. "Sea traffic through the Strait of Hormuz has been permitted," the notification said, confirming the end of temporary supply restrictions for the region.
- With the supply situation normalizing, The Ministry is "omitting" parts of the emergency Order. Officials previously withdrew separate measures directing refiners to maximize LPG production and restricting diesel sales to bulk consumers, effectively ending the temporary emergency regime.
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Govt withdraws emergency gas supply curbs as LNG shipments via Strait of Hormuz resume
The petroleum ministry amended 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
Govt Lifts Gas Curbs: With the smooth movement of oil and gas ships through the Strait of Hormuz, the Indian government has withdrawn several emergency restrictions imposed domestically on gas.
Government withdraws emergency gas curbs imposed during Hormuz disruption as LNG supplies normalise
The order had also required State-run GAIL, in coordination with the Petroleum Planning and Analysis Cell (PPAC), to pool and redistribute gas supplies, notify a pooled price for diverted gas, and oversee implementation of revised allocation schedules.
India withdraws emergency LNG curbs as Strait of Hormuz shipments resume
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India withdraws emergency gas curbs imposed during Hormuz disruption as LNG supplies normalise - The Tribune
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.
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