Government withdraws emergency gas curbs imposed during Hormuz disruption as LNG normalise

The Indian Ministry of Petroleum and Natural Gas withdrew emergency gas curbs imposed during a Hormuz disruption in a notification issued on Saturday, July 4, 2026, as LNG supplies have now normalized.

This allows domestically produced natural gas and imported LNG to be sold to priority customers under a new regulatory framework, stabilizing energy access after the disruption.

The move matters because it signals relief for India's energy sectors, including fertilizers and power, following a period of supply constraints.

Indian Ministry

Indian Ministry of Petroleum and Natural Gas lifted curbs because LNG supplies have normalized following the Hormuz disruption, allowing domestic gas and imports to be sold to priority customers under new regulations.

Energy Analysts

Energy analysts note that natural gas use accounts for significant fertilizer production, while power plants rely on smaller shares, making curbs critical for stabilizing supply during Hormuz disruptions.

  • The Strait of Hormuz handles about 21% of global petroleum consumption daily.
  • India's LNG imports grew by nearly 30% since 2016 to meet rising energy demand.
  • Fertilizers account for approximately 30% of India's total natural gas consumption.

US-Iran-Israel War and Strait of Hormuz Control Dispute

The United States and Iran are bound by a 60-day ceasefire following their initial agreement to end the war and reopen the Strait of Hormuz, with formal signing completed in Switzerland and further details expected shortly.

US-Iran-Israel War and Strait of Hormuz Control Dispute— full background & timeline
Government withdraws emergency gas curbs imposed during Hormuz disruption as LNG normalise | Implica