With calm returning to West Asia, the central government has lifted most of the emergency restrictions it had placed on natural gas supply. The decision comes at a time when tensions in the region have eased significantly and the movement of LNG (liquefied natural gas) through the Strait of Hormuz has returned to its normal rhythm. In a notification issued on Saturday, the Ministry of Petroleum and Natural Gas amended the Natural Gas (Supply Regulation) Order, 2026, scrapping the key provisions under which the supply of domestic and imported gas was being routed according to a government-set priority list.
When and Why the Curbs Were Imposed
The government had brought in these emergency measures on 9 March under the Essential Commodities Act, at a point when the conflict in West Asia had sharpened. During that period, strikes by the United States and Israel on Iran, and the Iranian response that followed, began to disrupt LNG movement through the Strait of Hormuz. Several suppliers went so far as to invoke force majeure, the clause for unforeseen circumstances. That raised the prospect of an energy supply squeeze for India and a number of other countries, forcing the government to act as a precaution.
Three Big Steps Taken During the Crisis
In its notification, the ministry made clear that a ceasefire is now in force in the region, talks are ongoing, and maritime traffic through the Strait of Hormuz has resumed. Given these conditions, there was no longer any need to keep the emergency curbs on gas supply in place. During the West Asia crisis, the government had taken three major steps to shore up the country's energy security. The first was bringing natural gas supply under its control; the second was directing refineries to boost LPG production in place of petrochemical feedstock; and the third was capping diesel sales to bulk consumers.
LPG and Diesel Curbs Had Already Been Withdrawn
The two restrictions tied to LPG production and diesel sales had already been rolled back earlier, and now the provisions linked to gas supply have been dropped as well. It is worth noting that India meets roughly 88 percent of its total crude oil requirement and about 50 percent of its natural gas needs through imports. On top of that, 40 to 45 percent of the country's total crude oil imports and close to 65 percent of its LNG imports come from West Asia alone. This is precisely why any disruption in the Strait of Hormuz is treated as a serious challenge to India's energy security.
PNG, CNG and LPG Supply Stayed Uninterrupted
Under the emergency order enforced in March, the authority to allocate domestic gas, imported LNG and re-gasified LNG rested entirely with the government. During that phase, the PNG supplied to homes, the CNG used in vehicles, LPG production and pipeline operations were all guaranteed in full on the basis of their average consumption. Fertiliser plants, meanwhile, were assured 70 percent of their average requirement and industrial consumers 80 percent, so that both farming and industry could keep running smoothly.
Gas Cut for Petrochemical Plants and Power Stations
To meet these priorities, gas supply to petrochemical plants and gas-based power stations had to be trimmed. Alongside this, oil refineries too were instructed to hold their average gas consumption to around 65 percent. To run this entire arrangement in an orderly way, the state-owned company GAIL was tasked, together with the PPAC, with pooling the gas, redistributing it and fixing a fresh price. With all these provisions now withdrawn, the gas market is expected to settle back into its normal course.
