The Indian government has withdrawn emergency curbs on natural gas supplies after liquefied natural gas (LNG) shipments through the Strait of Hormuz resumed, following a ceasefire in the West Asia conflict, according to News on AIR / Akashvani.
Emergency Order Revoked
In a notification, the Ministry of Petroleum and Natural Gas announced that the Natural Gas (Supply Regulation) Order, 2026 has been amended, removing key emergency provisions that had allowed the government to prioritise the allocation of domestically produced natural gas and imported LNG, as reported by Akashvani.
Background: March 2026 Emergency Curbs
The emergency order was issued in March this year under the Essential Commodities Act, after disruptions to LNG shipments through the Strait of Hormuz, the source stated. The curbs gave the government broad authority to direct supplies to critical sectors amid the shortage.
Impact of West Asia Ceasefire
According to News on AIR, the withdrawal follows the resumption of LNG shipments through the Strait of Hormuz after a ceasefire in the West Asia conflict. The strait is a vital chokepoint for global LNG trade, and its disruption had forced India to invoke emergency measures.
Key Changes Under the Amendment
| Provision | Before Amendment (March 2026) | After Amendment (July 2026) |
|---|---|---|
| Allocation priority | Government could prioritise allocation of domestic gas and imported LNG | No such provision; normal market allocation resumes |
| Legal basis | Essential Commodities Act | Order amended, emergency powers removed |
| Trigger | Disruption to Strait of Hormuz LNG shipments | Ceasefire and resumption of shipments |
The table summarises the shift from centralised control back to market-driven distribution, as reported by Akashvani.
Implications for Natural Gas Markets
With the removal of curbs, domestic producers and LNG importers regain flexibility in marketing their gas. The resumption of Strait of Hormuz flows also eases supply concerns, potentially stabilising spot LNG prices. However, the source does not provide specific price data or quantify the impact on volumes.
Traders and procurement teams should monitor developments in the West Asia ceasefire and any further changes to the Natural Gas (Supply Regulation) Order. The Ministry's notification signals a return to normal regulatory oversight after the emergency phase.
Sources:
