Govt withdraws emergency gas curbs imposed during Hormuz disruption as gas supply eases

PTC News Desk: The central government has removed most of the emergency restrictions it had imposed on natural gas supplies after the situation in West Asia improved and LNG shipments through the Strait of Hormuz resumed following a ceasefire.

In a notification issued on Saturday, the Ministry of Petroleum and Natural Gas amended its emergency gas supply order, ending key provisions that allowed the government to control how domestically produced and imported gas was distributed among consumers.

The original order was introduced in March after tensions and conflict in West Asia disrupted LNG shipments through the Strait of Hormuz. Some suppliers declared force majeure and diverted cargoes, raising concerns about fuel shortages.

The government said the situation has now stabilised, with a ceasefire in place, ongoing negotiations, and normal shipping activity returning to the Strait of Hormuz.

The gas supply restrictions were one of three emergency steps taken to protect India's energy security. The other two measures — increasing LPG production and limiting diesel sales to bulk buyers — had already been withdrawn earlier as supplies improved.

India depends heavily on imports for its energy needs, importing about 88% of its crude oil and around 50% of its natural gas. A large share of these imports comes from West Asia, making the country vulnerable to disruptions in the Strait of Hormuz, a key route for Gulf energy exports.

Although India was able to buy crude oil from other countries, natural gas imports remained at risk because most LNG shipments from Qatar pass through the Strait of Hormuz.

To avoid shortages during the crisis, the government had used emergency powers to control gas allocation and ensure that important sectors continued to receive uninterrupted supplies. With the supply situation now back to normal, most of those emergency measures have been withdrawn.