Petroleum Ministry has withdrawn most emergency natural gas supply restrictions after LNG shipments through the Strait of Hormuz resumed following a ceasefire in West Asia. The move reflects improved regional stability and restores normal gas supply operations while strengthening India’s energy security.
Key Highlights
- Petroleum Ministry withdraws emergency natural gas supply regulations introduced during the West Asia conflict.
- LNG shipments through the Strait of Hormuz have resumed after a regional ceasefire.
- Natural gas allocation restrictions under the Essential Commodities Act have been eased.
- India continues to rely heavily on West Asia for crude oil and LNG imports.
The Centre has withdrawn most provisions of the emergency natural gas supply regulation order introduced during the West Asia conflict, following the resumption of liquefied natural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. The decision comes after a ceasefire in the region and an improvement in maritime trade, easing concerns over India’s energy supplies.
In an official notification, the Ministry of Petroleum and Natural Gas amended the Natural Gas (Supply Regulation) Order, 2026, removing key provisions that allowed the government to regulate the allocation of domestically produced natural gas and imported LNG based on a priority customer list during the crisis.
The ministry said the security situation in West Asia has improved considerably, with ceasefire efforts holding, diplomatic negotiations progressing and shipping activity through the Strait of Hormuz returning to normal. The reopening of this crucial maritime route has significantly reduced the risk of fuel supply disruptions for India.
The emergency regulations were imposed under the Essential Commodities Act after military tensions involving the United States, Israel and Iran disrupted LNG shipments through the Strait of Hormuz. The conflict prompted several suppliers to invoke force majeure and reroute cargoes, raising concerns over India’s natural gas availability.
The government had also introduced two additional emergency measures—directing refiners to maximise LPG production by diverting feedstock from petrochemical units and restricting diesel sales to bulk consumers. Both measures had already been withdrawn as the energy supply situation gradually stabilised.
India remains highly dependent on energy imports, importing nearly 88 per cent of its crude oil and about half of its natural gas requirements. Around 40–45 per cent of crude oil imports and nearly 65 per cent of LNG imports come from West Asia, making the Strait of Hormuz one of the country’s most strategically important energy corridors.
