The Centre has decided to retract most of the emergency natural gas supply regulations that were put in place during the West Asia conflict. This move comes as liquefied natural gas (LNG) shipments through the Strait of Hormuz have resumed following a ceasefire and an improvement in the regional supply situation. The Ministry of Petroleum and Natural Gas, through an official notification, amended the Natural Gas (Supply Regulation) Order, 2026, by eliminating crucial operational provisions that allowed the government to control the allocation of domestically produced natural gas and imported LNG based on a priority customer list.
The Ministry highlighted that the situation in West Asia has seen a significant improvement, with a ceasefire in effect and negotiations progressing, leading to the resumption of maritime traffic through the Strait of Hormuz. The reopening of this vital waterway has alleviated concerns regarding fuel and gas supplies to India. The emergency gas supply regulations were initially enforced under the Essential Commodities Act due to disruptions in LNG shipments through the Strait of Hormuz following the conflict in West Asia.
These regulations were part of a series of emergency measures implemented by the government to protect domestic energy supplies. The other two measures, which involved directing refiners to increase LPG production by diverting feedstock from petrochemical units and imposing restrictions on diesel sales to bulk consumers, had already been lifted as the supply situation normalized.
India heavily relies on imports to fulfill its energy needs, with approximately 88% of its crude oil requirement and almost half of its natural gas consumption being imported. A significant portion of the country’s crude oil imports and a substantial portion of LNG supplies, around 40-45% and nearly 65% respectively, originate from West Asia. This underscores the critical role of the Strait of Hormuz in India’s energy security. Despite being able to diversify crude oil sources during disruptions, natural gas imports remained vulnerable as most LNG shipments from Qatar pass through the Strait of Hormuz.
