The Indian government revoked emergency natural gas supply regulations on Saturday. These rules, originally imposed in March, followed a conflict in West Asia. The order previously allowed the government to prioritize domestic and imported LNG for essential consumers after disruptions in the Strait of Hormuz.
A ceasefire and ongoing negotiations enabled the resumption of maritime traffic through the strait. The removal of these curbs restores normal gas allocation for fertilizer plants, refineries, and city gas distributors. This move signals a significant de-escalation of the regional supply crisis.
The development is expected to stabilize LNG supply chains and reduce global gas market risk premiums. Several LNG suppliers had invoked force majeure clauses during the disruption. India's return to normal operations will impact international demand and cargo availability.