New Delhi: The Ministry of Oil has set up a committee to examine supply issues following a sudden shortage of commercial LPG cylinders, which has raised alarm in the hospitality sector. Restaurant associations have warned that eateries could face closure within days if supplies are not restored.
The ongoing conflict in the Middle East has disrupted fuel supply lines, including India’s LPG imports. To ensure household needs are met, the government has prioritised domestic cooking gas, creating a supply crunch for hotels and restaurants that rely on market-priced commercial LPG.
“For LPG supply to non-domestic sectors, a committee comprising three Executive Directors of Oil Marketing Companies (OMCs) has been constituted to review requests from restaurants, hotels, and other industries,” the ministry said in a post on X.
India consumes approximately 31.3 million tonnes of LPG annually, with 87 per cent used in households and the remainder in commercial establishments. About 62 per cent of total LPG requirements are met through imports. Recent attacks on Iran by the US and Israel, and Tehran’s retaliatory strikes, have closed the Strait of Hormuz, through which India sourced 85–90 per cent of its LPG imports from countries including Saudi Arabia.
While alternate sources are being explored, limited availability has forced the government to prioritise domestic supplies, leaving commercial establishments struggling. Industry sources report that operations in Mumbai and Bengaluru are already being affected as hotels and restaurants face difficulties securing cooking gas.
Vijay Shetty, president of the India Hotels and Restaurant Association, warned that the shortage is spreading rapidly and could soon paralyse the sector.
The ministry, while asserting that fuel stocks remain adequate, has directed refineries to maximise LPG output by reducing petrochemical streams. It has also extended the LPG refill booking cycle from 21 days to 25 days.
“In light of current geopolitical disruptions and constraints on LPG supply, the ministry has ordered oil refineries to increase production and allocate additional output for domestic use,” it said on X.
The government has prioritised domestic LPG for households and extended the inter-booking period to prevent hoarding and black marketing. Non-domestic supplies from imported LPG are being directed primarily to essential sectors such as hospitals and educational institutions.
With PTI inputs