Oil Ministry Forms Panel Amid Commercial LPG Shortage
Hospitality sector raises alarm over cooking gas scarcity while government prioritises household supplies.
New Delhi, Mar 10: The Ministry of Petroleum and Natural Gas has set up a committee to examine supply concerns following a sudden commercial LPG shortage that has unsettled the hospitality sector, with restaurant associations warning that prolonged disruption could force eateries to suspend operations.
In a statement posted on X, the ministry said a panel comprising three Executive Directors from Oil Marketing Companies (OMCs) has been formed to review requests related to LPG supply for restaurants, hotels and other industries.
The shortage comes as escalating tensions in West Asia have disrupted global fuel supply routes. The conflict involving the United States, Israel and Iran has affected shipping through the Strait of Hormuz, a key corridor through which India receives the majority of its LPG imports from producers such as Saudi Arabia.
India consumes about 31.3 million tonnes of LPG annually. Nearly 87 per cent of this demand comes from household kitchens, while the remaining share is used by commercial establishments including hotels and restaurants. Around 62 per cent of the country’s LPG requirement is met through imports.
With supply chains under pressure, the government has prioritised domestic cooking gas distribution to households. As a result, commercial users that depend on market-priced cylinders have faced reduced availability.
Industry sources say the shortage is already affecting operations in major cities such as Mumbai and Bengaluru, where restaurants are struggling to secure cooking gas. Vijay Shetty, president of the India Hotels and Restaurant Association, said the disruption is spreading quickly and could soon severely impact the sector.
While acknowledging supply constraints, the ministry has maintained that overall fuel stocks remain adequate. To ease pressure, refineries have been directed to maximise LPG output by reducing petrochemical streams and diverting additional production to domestic use.
Authorities have also extended the interval between domestic LPG refill bookings from 21 days to 25 days to prevent hoarding and black marketing.
Imported LPG available for non-domestic consumption is currently being allocated primarily to essential institutions such as hospitals and educational establishments, while the newly formed committee reviews requests from affected commercial sectors.
