India has withdrawn the emergency natural gas supply regulation order imposed during the West Asia conflict, following the resumption of liquefied natural gas (LNG) shipments through the Strait of Hormuz after a ceasefire. The Ministry of Petroleum and Natural Gas issued a notification on Saturday amending the Natural Gas (Supply Regulation) Order, 2026, omitting key operational provisions that had required all domestically produced natural gas and imported LNG to be sold according to a new priority customer list drawn up by the government.
Background of the Emergency Order
The original order was issued on March 9, 2026, under the Essential Commodities Act, after the conflict in West Asia disrupted LNG shipments through the Strait of Hormuz. Suppliers invoked force majeure and diverted cargoes to priority consumers, prompting the government to intervene. The gas supply curbs were one of three emergency measures introduced after energy supplies from the Gulf were threatened by the effective closure of the Strait of Hormuz, following US and Israeli strikes on Iran on February 28 and Tehran's retaliatory attacks.
The other two measures—directing refiners to maximise LPG production by diverting feedstock from petrochemicals and restricting diesel sales to bulk consumers—have already been withdrawn as the supply situation normalised.
India's Energy Vulnerability
India, the world's third-largest oil importer and consumer, imports about 88 per cent of its crude oil requirements and around half of its natural gas needs. About 40–45 per cent of its crude oil imports and nearly 65 per cent of its LNG supplies come from West Asia, underscoring the country's vulnerability to disruptions in the Strait of Hormuz, through which most Gulf energy exports are shipped. The threat to traffic through the waterway prompted the government to invoke emergency powers in March to safeguard domestic fuel and gas supplies. While India diversified crude oil purchases by sourcing supplies from other producers, natural gas imports remained exposed because most LNG cargoes from Qatar pass through the Strait of Hormuz.
Details of the Emergency Measures
The March order empowered the government to direct sector-wise allocation and diversion of domestic gas, LNG, and regasified LNG to ensure uninterrupted supplies to priority consumers. Under the emergency measures, supplies to piped natural gas (PNG) households, compressed natural gas (CNG) for transport, LPG production, and pipeline operations were to be 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 curtailment of gas supplies to petrochemical plants and power stations, while directing oil refiners to reduce gas consumption to about 65 per cent of their average use, wherever operationally feasible. The order 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. Gas producers, LNG importers, marketers, pipeline operators, and city gas distributors were directed to comply with revised supply schedules, and the emergency provisions overrode existing gas sale agreements and other commercial contracts.
Ceasefire and Normalisation
The government said the emergency measures were no longer required as the conflict had been followed by a ceasefire, negotiations were underway, and maritime traffic through the Strait of Hormuz had resumed. The notification stated: "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 be resumed." Following this, the government is omitting parts of the March 9 emergency order that prioritised all available gas.
