The Centre announced that it had abolished the bulk of the emergency natural gas supply regulation order that was put in place during the West Asia war. This was done in light of the improvement in the regional supply situation and the return of liquefied natural gas (LNG) shipments via the Strait of Hormuz following a ceasefire.
Important operational rules that gave the government the authority to prioritize consumers in the distribution of domestically produced natural gas and imported LNG were removed from the Natural Gas (Supply Regulation) Order, 2026 by the Ministry of Petroleum and Natural Gas in an official alert.
According to the ministry, the situation in West Asia has dramatically improved, with talks underway, a ceasefire in place, and maritime traffic through the Strait of Hormuz resuming. Concerns about India’s fuel and gas supply have been allayed by the reopening of the strategic waterway.
After the dispute in West Asia interfered with LNG cargo going through the Strait of Hormuz, the emergency gas supply rules were enacted under the Essential Commodities Act.
Following military conflicts between the United States, Israel, and Iran, some LNG suppliers invoked force majeure and diverted cargoes, sparking worries about India’s gas supply.
One of three emergency steps implemented by the government to ensure domestic energy supplies was the limitations on gas supply. The other two steps, which were to mandate refineries to maximize LPG output by diverting feedstock from petrochemical facilities and to limit diesel sales to large users, had already been canceled once the supply situation returned to normal.
India still relies heavily on imports to satisfy its energy needs, importing roughly half of its natural gas consumption and approximately 88% of its crude oil requirements. The Strait of Hormuz is essential for India’s energy security since almost 65% of the nation’s LNG supply and between 40% and 45% of its crude oil imports come from West Asia.
During the disturbance, India was able to diversify its crude oil purchases by obtaining supplies from alternative producers; however, natural gas imports were especially susceptible since the Strait of Hormuz is used by the majority of LNG cargoes coming from Qatar.