LPG Shortage News Highlights: ‘No need to panic’, Govt assures households domestic delivery cycle stays 2.5 days

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"India stands ready to take appropriate measures, as necessary, to support global market stability in alignment with the efforts of the International Energy Agency," the Indian government said in a statement.

"Very pleased to read the Government of India's supportive statement for IEA's collective action to release emergency oil stocks to address disruptions in global oil markets," IEA Executive Director Fatih Birol said in a post on X.

Over 800 hotels and restaurants in Thane in Maharashtra face potential shutdown due to dwindling commercial LPG supplies.

Thane City Hotel Association secretary Raghunath Shetty said: "Many hotels currently have gas stock for only five to six days. If the supply is not restored immediately, closures may become unavoidable. Hotel operators have already been cautioned by suppliers that the situation could deteriorate further."

The Delhi government said the supply of LPG, petrol, diesel and PNG in the national capital remains normal with no shortages.

Residents have been urged not to believe rumours about gas supply disruptions or engage in panic buying or hoarding.

Indraprastha Gas Limited informed that the Ministry of Petroleum and Natural Gas issued guidelines on March 9, 2026 for proper distribution of PNG and CNG.

Officials confirmed no shortage of domestic PNG in Delhi.

Oil marketing companies said petrol, diesel and LPG stocks are sufficient, and the supply chain is operating normally.

The LPG booking interval has been increased from 21 days to 25 days, but cylinders are still delivered within two to three days after booking.

Hospitals and educational institutions are being prioritised for commercial gas cylinder supply.

India’s total natural gas consumption is about 189 MMSCMD, with 97.5 MMSCMD produced domestically.

Around 47.4 MMSCMD of gas supply has been impacted due to force majeure conditions.

Gas procurement from alternative suppliers and routes is underway to offset the disruption.

Companies have secured new LNG cargoes, with two shipments already on the way to India.

The government issued a Natural Gas Control Order on March 9, 2026 under the Essential Commodities Act to manage supplies.

Domestic PNG and CNG supplies will receive 100% allocation without any cuts.

Tea industries, manufacturing units and other gas-grid consumers will receive about 80% of their previous six-month average supply.

Fertiliser plants will receive about 70% supply.

Refineries and petrochemical units will see around a 35% reduction to prioritise critical sectors.

An inter-ministerial briefing on the West Asia situation, official briefing focused on energy supply preparedness, maritime safety, welfare of Indian nationals abroad, and government communication measures.

-India’s crude oil supply remains secure despite tensions in West Asia.

-The country consumes about 55 lakh barrels of crude oil per day.

-India currently imports crude from around 40 countries, reflecting a diversified procurement strategy.

-Around 70% of crude imports now come through routes outside the Strait of Hormuz, compared with about 55% earlier.

-Two additional crude cargoes are already on the way to India, further strengthening supply.

-Refineries across the country are operating at very high capacity utilisation, in some cases above 100% capacity to ensure uninterrupted fuel availability.

Bharat Petroleum Corporation Limited (BPCL) said LPG supplies are being carefully rationed due to the current geopolitical situation and a blockade affecting LPG imports.

The company stated that domestic households are being given top priority in LPG allocation to ensure wider coverage.

Requests from other sectors are being reviewed separately. A joint committee of LPG Executive Directors from Bharat Petroleum Corporation Limited, Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation Limited (HPCL) is evaluating these requests.

West Bengal Chief Minister Mamata Banerjee said the state government has coordinated with gas and CNG companies to help the public amid LPG supply disruptions.

“The supply chain is not in our hands. It is in the hands of the Government of India,” Banerjee said at a press conference.

She added that the state still reached out to companies and requested them to act in the interest of the public.

Banerjee noted that resolving the supply disruption will take time.

“We have called the gas companies and CNG companies and held meetings with them… it takes time to resolve the problem,” she said.

West Bengal Chief Minister Mamata Banerjee said the state government has coordinated with gas and CNG companies to help the public amid LPG supply disruptions.

“The supply chain is not in our hands. It is in the hands of the Government of India,” Banerjee said at a press conference.

She added that the state still reached out to companies and requested them to act in the interest of the public.

Banerjee noted that resolving the supply disruption will take time.

“We have called the gas companies and CNG companies and held meetings with them… it takes time to resolve the problem,” she said.

The Centre has asked states and Union territories to closely monitor LPG supply amid a shortage of commercial cylinders triggered by the widening conflict in West Asia.

The meeting was chaired virtually by Govind Mohan, India’s Home Secretary.

The meeting was attended by chief secretaries, Directors General of Police (DGPs), and officials from the consumer affairs ministry.

States have been instructed to prevent hoarding and black marketing of LPG cylinders.

The Gujarat government has formed a special committee to coordinate with the Centre to ensure an uninterrupted supply of Liquefied Natural Gas (LNG).

The panel will be chaired by the Chief Secretary and will continuously review the gas supply situation.

State minister Jitu Vaghani said the committee was formed under the guidance of Chief Minister Bhupendra Patel.

BN Jha, president of the Mukherjee Nagar RWA told PTI the LPG shortage is particularly affecting students who live alone or in paying guest (PG) accommodations in the area.

According to Jha, several students reported inability to get LPG refills and said they had to rely on outside food, increasing daily expenses. In some PG accommodations, the shortage has also reportedly led to a drop in meal services.

“Students have reported that they are not getting gas refills and are forced to eat outside. In some PGs, residents have said meals have been reduced over past few days, and some are serving only one meal a day,” Jha said.

Hotels in Hyderabad are hit hard by the shortage of commercial LPG cylinders, as per a PTI report.

It cited industry representatives to report that around 25-30% of establishments are likely to shut down in a day, and around 75% in two days if the situation continues.

Hyderabad Hotels Association president Ashok Reddy said the shortage of commercial cylinders is severe and some small hotels are trying to manage the situation by using induction stoves and wood as fuel.

"However, these measures are not possible for even 20% of hotels as many are located on upper floors of multi-story buildings. Cases of black marketing of cylinders have also been heard," he said.

Fertiliser companies such as GNFC, Chambal Fertilizers, Rashtriya Chemicals & Fertilizers (RCF), FACT and Deepak Nitrite could face pressure if LNG shortages persist.

Urea production relies heavily on imported LNG, and disruptions could impact supply just as farmers prepare for the summer and upcoming kharif crop seasons.

India also imports nearly all of its muriate of potash and about 60% of di-ammonium phosphate (DAP).

Local vendors at Inore's famous Chaat Chowpatty has swapped traditional gas burners for electric appliances amid the commercial LPG shortage, PTI reported. Shopkeepers told the agency thay are also considering solar-powered appliances if necessary.

Gunjan Sharma, president of the city's 56-shop Chaat Chowpatty Traders Association, told PTI, "The supply of commercial LPG cylinders has been stopped. Therefore, we have purchased electric appliances and started using them. Shopkeepers should not feel discouraged by the current shortage of cooking gas because alternative fuel options are available. If necessary, we will consider using solar-powered cooking equipment. Customers will continue to enjoy the delicious food at our Chaat Chowpatty under all circumstances."

Indian Oil Corporation, which supplies LPG cylinders to almost 85% of the Northeast market, today said it has enough stock to provide cooking gas in the region, PTI reported.

A senior IOC official told PTI that all its nine bottling plants in the Northeast are producing LPG cylinders at their maximum capacities and distributing the same as per the government's directives.

"As of now, there is no gap between demand and supply for the LPG cylinders. All cylinders are being supplied as per the restrictions of the central government. So, the production of LPG will never stop in the Northeast. However, the output capacity may drop in the long term if the crisis continues," she added.

Rising gas prices and supply disruptions triggered by the closure of the Strait of Hormuz are beginning to ripple across Indian stock markets, putting several sectors and listed companies under pressure.

Restaurant and food delivery companies are also likely to remain under the spotlight. Stocks including Eternal, Swiggy, Jubilant FoodWorks (Domino’s), Devyani International, Sapphire Foods (KFC and Pizza Hut), Westlife FoodWorld (McDonald’s) and Speciality Restaurants could face operational pressure as LPG shortages hit commercial kitchens. Restaurants in cities such as Mumbai and Bengaluru have already warned of possible closures due to limited fuel availability.

“Our gas companies have procured liquified natural gas (LNG) cargos from new sources. Two LNG cargos are on their way to India,” Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum & Natural Gas said at a joint press briefing today.

The Oil Ministry has assured that measures undertaken by the Centre have led to a 25% increase in liquified natural gas (LPG) production in India, PTI reported.

Further, the ministry added that crude oil is being sourced from non-Strait of Hormuz routes. It added that supplies secured through alternative routes are more than those that were disrupted, the report added.

In a statement on Wednesday, the ministry assured households that there is “no need to panic” while making LPG bookings. “Normal delivery cycle for domestic household remains 2.5 days,” it added.

The Bengaluru PG Association has issued an advisory to partner paying guest accommodations in the city, as per an NDTV report.

• PGs have been advised to serve two daily means from Monday to Friday
• Avoid items such as chapati, dosa and pooris that need more cooking gas.
• Restrict personal cooking gas inside PGs
• Implement use of electric rice cookers.
• Implement shared cooking between nearby PGs

The Centre on Tuesday invoked the Essential Commodities Act, 1955 under which the supply of natural gas to certain sectors shall be treated as priority.

Notably, hotels, restaurants, and small eateries are likely to bear the brunt of the shortage as they rely heavily on commercial LPG cylinders for daily cooking operations.

India imports nearly half of its natural gas requirements, with the Middle East accounting for about 60% of LNG supplies, leaving GAIL's transmission and marketing businesses vulnerable to supply disruptions.

If Middle East LNG is unavailable for one quarter, Fitch estimates GAIL's EBITDA net leverage could rise to about 2.5x in the financial year ending March 2027, compared with an earlier estimate of 1.8x.

Among rated OMCs, BPCL currently has the strongest balance-sheet buffers to withstand a prolonged supply disruption or higher feedstock costs, followed by IOC and HPCL, the Fitch note added.

The Centre is likely to balance OMCs' financial health with efforts to manage inflation and fiscal policy, as seen in past periods of crude price volatility, it added.

Indian OMCs and GAIL could face cash flow issues if supply disruptions continue amid the war in West Asia, elevated oil prices, and closure of the strategic Strait of Hormuz, according to Fitch Ratings.

It added that near-term credit of Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOC) may weaken, but their ratings is steady due to strong government support.

The Lawyers' Canteen at the Delhi High Court has temporarily suspended the preparation and serving of main course items due to the 'unavailability of LPG cylinders', until further notice amid restriction on LPG supply, LiveLaw reported.

The canteen stated that services will return to normal as soon as the gas supply becomes available. “At the moment, we do not have any information regarding when the LPG supply will be restored. We will resume the preparation of the main course as soon as the gas supply becomes available,” the notice said.

India has around 25-30 days stockpile of liquified petroleum gas (LPG) and 10-12 days stockpile of liquified natural gas (LNG), according to an S&P report. It added that strategic petroleum reserves support 10 days of consumption while its commercial stocks support roughly 65 days, PTI reported.

Overall, India imports around 55% of its LPG and 30% of its LNG through the Strait of Hormuz, which has been shut due to the ongoing war in the middle east.

Profit margins of oil marketing companies (OMCs) are likely to face pressure from both the market and regulatory side amid the supply side strain due to the West Asia conflict, according to S&P Global Ratings today.

The trade through the crucial Strait of Hormuz has been blocked, sinking oil imports into India to concerning lows, it added, noting that India gets 55% of its LPG and 30% of its LNG from the route.

It also recently revised the 2026 average price assumption for Brent crude oil prices by $5 to $65 and noted that Indian OMCs such as Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) will remain dependent on maritime routes to fulfil its crude needs.

There is some scope for diversification, with imports from Russia and South America.

Kerala Chief Minister Pinarayi Vijayan today requested Prime Minister Narendra Modi to ensure adequate LPG supply across the country and undertake urgent steps to mitigate price rise, PTI reported.

He pointed that hike in LPG prices has increased financial burden on ordinary families; and that limited booking interval for domestic LPG connections has worsened the situation.

He also expressed concern over enough LPG supply for the service sector, noting that migrant labourers depend on these establishments for food.

“In this situation affecting the lives of ordinary people as well as the business sector, the Centre should urgently intervene to ensure adequate availability of LPG and reduce the impact of the price rise,” he said.

Congress leader Priyanka Gandhi Vadra today lashed out at the government over LPG availability and burden on common people.

Speaking to reporters at the Parliament House, Gandhi said, “I am wondering, how much will the people tolerate? In the last 10 years if you see, prices of all things have gone up, unemployment is rising, now look at the LPG situation. How much will the people tolerate?”

She blamed the Centre for its policies, adding: “All this is beacuse of their policies. It would have been better if these things were debated in Parliament, we would have been able to raise people's questions.”

The Delhi High Court Lawyers’ Canteen has stopped serving main-course meals due to a shortage of LPG cylinders linked to the ongoing US–Israel–Iran conflict and resulting fuel supply disruptions.

Debaditya Chaudhury, managing director of Chowman, Oudh 1590, Chapter 2 and Chaudhury & Company, told India Today, that the commercial LPG shortage has been particularly severe in Bengaluru, forcing several restaurants to temporarily suspend operations.

He added that the company has scaled down operations at some outlets, prioritising dine-in and app orders from key locations while taking precautionary steps to maintain service despite limited gas supplies.

Kerala Chief Minister Pinarayi Vijayan has raised concerns over LPG availability amid tensions in West Asia, warning that recent price increases have added to the burden on households, India Today reported.

He said reports of shortages and the 27-day booking interval for domestic cylinders have worsened the situation, cautioning that supply uncertainty could also affect hotels and restaurants, particularly during Ramadan. Vijayan has urged the Prime Minister to ensure adequate supplies and consider subsidies to stabilise prices.

The Retailers Association of India (RAI) has urged the government and oil marketing companies to ensure uninterrupted supply of commercial LPG cylinders to restaurants, warning that current restrictions prioritising domestic users are disrupting commercial kitchens.

The association said prolonged shortages could lead to restaurant closures and job losses, and has called for a minimum assured LPG allocation for the food service sector along with a gradual shift to alternatives such as piped natural gas and energy-efficient cooking technologies

Former Union Petroleum Minister Veerappa Moily criticised the government’s foreign and energy policies, saying the oil strategy developed during his tenure had not been sustained. He alleged that subsequent changes have created confusion and left India “being dictated by Trump.”

Moily also warned that rising global tensions could push the world towards a potential third world war.

LPG cylinder prices in India have increased, with domestic gas rising by ₹60 and commercial by ₹144. This hike, driven by supply disruptions stemming from the US-Israel war with Iran, is burdening households and restaurants.

The Karnataka Legislative Assembly witnessed heated exchanges now over the alleged LPG supply crisis, with Chief Minister Siddaramaiah and BJP legislators trading sharp remarks.

"There is a heavy shortage of LPG in the country. The reason behind this is that 90 per cent of the LPG imported in India is from the Strait of Hormuz. Restaurants and hotels are facing shortages. In the next two days, 50 per cent of hotels are on the verge of shutdown, news is coming from Delhi NCR, Bihar," Kejriwal said.

Induction cooktops are out of stock in major cities amid consumer panic over potential LPG supply disruptions stemming from the US-Iran conflict. Platforms like Blinkit and Zepto show many models sold out, particularly in areas reliant on LPG.

Amid escalating tensions in the Middle East and the resulting disruption in gas supplies, the Uttarakhand government has begun preparations to provide firewood for commercial use if required.

Uttarakhand Forest Minister Subodh Uniyal said the current situation resembles a crisis scenario. "With war-like conditions prevailing in several Middle Eastern countries, a shortage of gas cannot be ruled out," he said.

Amid concerns over LPG supplies, IRCTC has directed static catering units at railway stations to adopt alternative cooking methods such as microwaves and induction stoves, India Today reported.

Caterers have also been asked to maintain adequate stocks of ready-to-eat (RTE) items and packaged food, and to inform authorities immediately if LPG-based cooking operations are halted.

Piped Natural Gas (PNG): A cleaner option that supplies gas through underground pipelines, eliminating cylinder refills and reducing long-term operating costs.

Electric Cooktops: Infrared or ceramic cooktops provide quick heating and work with most utensils, making them a practical alternative during LPG shortages.

Induction Stoves: Energy-efficient appliances that heat rapidly using electromagnetic technology, though they require induction-compatible cookware.

Air Fryers and Microwaves: Useful for preparing quick meals when LPG supply is limited.

Indian Hotel & Restaurant Association (AHAR) president Vijay K Shetty said the LPG shortage has already forced around 20% of hotels to shut, warning that the number could rise in the coming days.

“You are absolutely right. Already, 20% of our hotels have closed due to the short supply of LPG cylinders, and this trend is likely to continue. It is expected that at least 50–60 more hotels may shut down in the next 2–3 days.”

The LPG shortage appears particularly acute in Hyderabad, where hotel associations say supplies of commercial cylinders have fallen by nearly 75%. Restaurant owners report that only 20–25 cylinders are delivered against orders of 100, disrupting operations in commercial kitchens.

The shortage has also affected PG hostels in Kukatpally, Gachibowli and Madhapur, which rely on LPG to prepare meals for students and working professionals.

Reliance Industries said natural gas from the KG-D6 Basin will be diverted to priority sectors in line with national energy priorities and government guidelines. The move aims to support essential supplies amid current market pressures.

PNG is considered more resilient during disruptions because it is delivered through underground pipelines. Unlike LPG, which relies on bottling plants, transport and door-to-door distribution that can face logistical strain during panic buying, PNG flows directly to households through a pipeline network.

The United Nations has warned that any closure of the Strait of Hormuz amid the West Asia conflict could pose serious risks to global trade and development, potentially driving up food prices and living costs.

In a report released on Tuesday, the UN Conference on Trade and Development (UNCTAD) said escalating tensions following US–Israeli strikes on Iran and Tehran’s retaliation have already disrupted shipping through the key maritime chokepoint, which carries roughly a quarter of global seaborne oil trade along with significant volumes of LNG and fertilisers.

Several regions have reported delays in LPG cylinder deliveries as distributors struggle to meet rising demand. The tight supply is attributed to a surge in domestic consumption, particularly as more households rely on LPG for cooking.

Volatility in global energy markets following heightened tensions in the Middle East has also contributed to the strain, as India imports a significant share of its LPG requirements. In addition, logistical constraints have slowed distribution in some areas, causing temporary shortages at the distributor level.

Among major states, Bihar currently has one of the highest domestic LPG prices at ₹1,002.50, while several northeastern states are even costlier due to transportation expenses.

On the other hand, Maharashtra ( ₹912.50) and Delhi ( ₹913.00) remain among the relatively cheaper markets for LPG cylinders.

‘There is absolutely no shortage of fuel. More details are being worked out. A serious war is going on... In this situation, there will be concerns that will be made known to everybody from time to time by the relevant departments... They are monitoring the situation very closely,’ the Union Minister said.