The central government has withdrawn most emergency rules on natural gas supplies that were introduced during the West Asia conflict, following the resumption of liquefied natural gas shipments through the Strait of Hormuz after a ceasefire.
In a notification released on Saturday, the Ministry of Petroleum and Natural Gas revised the Natural Gas (Supply Regulation) Order, 2026, and removed key clauses that had allowed authorities to direct domestic gas and imported LNG to essential users.
The original order, issued on March 9 under the Essential Commodities Act, responded to disruptions in LNG traffic through the Strait of Hormuz caused by the conflict. Several suppliers had declared force majeure and rerouted cargoes, leading the government to intervene to protect priority sectors.
The ministry stated that conditions have improved after the ceasefire, continued diplomatic talks and the return of maritime traffic through the Strait of Hormuz.
The notification noted that the conflict in the Middle East, which had interrupted LNG shipments, is now under a ceasefire with ongoing negotiations that have allowed sea traffic to resume.
The gas restrictions were one of three emergency steps taken when energy supplies from the Gulf faced threats due to the closure of the Strait of Hormuz after strikes on Iran and the subsequent response.
The other two measures, which required refiners to increase LPG output and limited diesel sales to bulk buyers, had already been lifted once fuel supplies normalised.
India, the third-largest importer and consumer of crude oil, depends on imports for about 88 per cent of its crude needs and roughly half of its natural gas use.
Around 40-45 per cent of its crude imports and nearly 65 per cent of LNG supplies come from West Asia, underscoring reliance on the Strait of Hormuz.
Earlier concerns over the route had led the government to use emergency powers in March to safeguard domestic fuel and gas availability.
Although India diversified some crude purchases from other sources, natural gas imports stayed vulnerable as most LNG from Qatar passes through the strait.
When suppliers invoked force majeure, the government introduced rules to maintain gas for critical sectors.
The March order empowered the government to set sector-wise allocation of domestic gas, LNG and regasified LNG for priority consumers.
Under the rules, households using piped natural gas, CNG for transport, LPG plants and pipeline operations received full average consumption from the prior six months.
Fertiliser units were assured 70 per cent of average needs, while industrial users on the national grid and city gas networks received 80 per cent, subject to availability.
To fulfil these targets, supplies to petrochemical plants and power stations were reduced, and refiners were asked to cut gas use to about 65 per cent where possible.
State-owned GAIL, working with the Petroleum Planning and Analysis Cell, was tasked with pooling and redistributing gas, setting pooled prices and updating allocation plans.
Gas producers, importers, marketers, pipeline firms and city gas distributors had to follow the new arrangements, which temporarily overrode existing contracts.
