LPG shortage: Households, restaurants feel disruption, demand for alternatives surges across cities — what we know

LPG shortage: India is facing its fourth consecutive day of Liquefied Petroleum Gas (LPG) shortage with disruptions reported across major cities, including Bengaluru, Chennai, Delhi, Mumbai, Kolkata and Hyderabad.

Communities, canteens, hotels and restaurants across the country are facing the brunt of LPG supply curbs for uses other than households and the four priority sectors. As a result, langars and Atal canteens have also been forced to cut menu options and come up with contingency plans, while restaurants are tweaking menus, raising prices and even temporarily shutting down operations to limit fuel consumption.

Why is India facing LPG, LNG and oil shortage?

The United States and Israel's attacks on Iran, followed by the Islamic Republic's retaliation, have led to the closure of the Strait of Hormuz, a critical waterway which transports around 85-90% of India's LPG imports from West Asia, including Saudi Arabia and Qatar.

According to the Oil Ministry, to create a buffer against regional disruptions, India has been steadily reducing its dependence on the Strait of Hormuz, and nearly 70% of crude oil imports now arrive via alternative routes.

At a media briefing on Friday, Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum & Natural Gas, said that LPG remains a concern, but “no dry-out has been reported at any of our 25,000 distributors”.

“Domestic production of LPG has increased by 30% as of today; compared to 5 March, our refineries are currently producing 30% more LPG,” she stated.

Cooking gas cylinder cost: City-wise prices on 13 March

The price of a 14.2 kg domestic cooking gas cylinder was hiked by ₹60, and the 19 kg commercial cylinder by ₹144 across major cities and states of the country.

Customers can book LPG refills from home through WhatsApp, SMS/IVRS or their respective OMC mobile apps.

The Oil Ministry on Friday noted that trends showed panic, with LPG booking demand up to 75.7 lakh against an average of 55.7 lakh in the pre-war period. “There is no need for panic booking; no dry-out at any LPG dealer,” Sharma added.

LPG shortage impact: What are households, small businesses doing?

Both domestic and commercial LPG cylinders in India have become costlier amid supply disruptions. The revision has affected households and businesses that rely on cooking gas for daily operations.

Raj Kumar, a chef at Devi Nashta Point, claimed that cylinders are unavailable even for ₹3,000-4,000 each. To deal with the crisis, tiffin centres in Hyderabad have turned to electric stoves, he told ANI.

Across major cities, commercial and small businesses have turned to electric stoves and induction tops as the LPG shortage continues to disrupt supplies.

In Gujarat's Surat, traders witnessed record demand for electric stoves over the past two to three days. They told ANI that as orders continue to pile up, the demand is outstripping supply. "There is a severe shortage of stock… as soon as supplies arrive, we sell them to the customers. We are selling at regular prices. We only have one or two pieces now; the shortage remains," local trader Lakshman Singh told ANI.

In Bengaluru, the Bangalore Hotels Association has notified members that supply of gas cylinders has been halted from today for diversion to essential services (hospitals, schools, senior citizens), and “Immediate action is expected from Union Ministers to resume commercial gas supply”.

RK Gupta, National Vice President of the LPG Association in Bhopal, confirmed they have not received LPG cylinders (except for hospitals and educational institutions). “The next booking will be allowed after a 25-day inter-booking period to avoid hoarding, and there is no shortage as claimed by oil companies,” he told the news agency.