Hormuz Strait Back! India Ends Emergency Gas Curbs as LNG Supplies Flow
Hormuz Strait Back! India Ends Emergency Gas Curbs as LNG Supplies Flow
Big relief for India! The government has withdrawn emergency natural gas curbs after LNG shipments resumed through the Strait of Hormuz. Stability returns to energy markets!
India has rolled back its emergency natural gas supply regulations, a move signaling renewed stability in energy markets. The Ministry of Petroleum and Natural Gas confirmed that most provisions of the Natural Gas (Supply Regulation) Order, 2026, have been removed. This decision comes as liquefied natural gas (LNG) shipments through the critical Strait of Hormuz have resumed following a ceasefire in the West Asia conflict.
The government stated that the emergency measures, which had allowed it to regulate the sale and allocation of domestically produced natural gas and imported LNG under a priority customer framework, are no longer necessary. A ceasefire is now in place, negotiations are ongoing, and maritime traffic through the Strait of Hormuz has been permitted to resume. This development brings significant relief to India's energy sector, which had faced potential disruptions.
The original order, issued on March 9, 2026, under the Essential Commodities Act, was a direct response to the West Asia conflict. The conflict had severely disrupted LNG shipments through the Strait of Hormuz, with international suppliers invoking force majeure clauses and diverting cargoes. Iran had restricted traffic in the strategic strait after reported strikes by the US and Israel on February 28, prompting concerns over India's energy security.
The emergency curbs were part of a broader set of three measures introduced to mitigate threats to energy supplies from the Gulf. Other measures had included directing refiners to maximize LPG production and restricting bulk diesel sales. With the resumption of normal maritime traffic and ongoing negotiations, the immediate threat to energy flows has subsided, paving the way for the government to normalize gas supply regulations.
