Govt lifts curbs on natural gas use as LNG shipment via Hormuz strait resumes
This story was originally published at 13:59 IST on 6 July 2026
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NEW DELHI – The government has lifted the curbs on the supply and allocation of natural gas, with tensions in the West Asia region de-escalating and the passage of liquefied natural gas shipments via the Strait of Hormuz resuming, according to an order issued by the oil ministry.
The oil ministry had on Mar. 9 laid down a directive for natural gas allocation for different sectors to ensure a sufficient supply of gas to priority sectors, including domestic piped natural gas supply, compressed natural gas for transport, fertiliser production, liquefied petroleum gas production and other industrial activities.
"...the ongoing conflict in the Middle East (West Asia) that had resulted in the disruption of liquefied natural gas shipments through the Strait of Hormuz has been subject of a ceasefire and negotiations are ongoing, as part of which, sea traffic through the Strait of Hormuz has been permitted to be resumed," the ministry said in a gazette notification, revoking its earlier order.
India faced its worst energy crisis in decades after Israel and the US launched joint military strikes on Iran on Feb. 28, prompting Tehran to hit back at Israel and at US military installations in the Persian Gulf. Iran had shut the Strait of Hormuz, a narrow waterway that connects the Gulf to the Arabian Sea and the Indian Ocean, resulting in a sharp rise in crude oil and natural gas prices.
At the time of disruption, India's total natural gas consumption was about 189 million standard cubic meters per day, of which 97.5 MMSCMD was produced domestically. About 47.4 MMSCMD of supply was affected due to force majeure conditions during the war. India was also hugely reliant on the Strait of Hormuz for half of its crude oil imports and 90% of its LPG imports. Liquefied petroleum gas is India's primary cooking fuel, and given its supply issue, the government had mandated the usage of LNG for LPG production and also for the production of PNG, an alternative cooking fuel. End
Reported by Priyasmita Dutta and Janwee Prajapati
Edited by Himanshi Gupta
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