LPG – Government Moves to Calm Supply Fears as Commercial Shortage Emerges
LPG – The Union government on Tuesday attempted to ease public concern over reports of a possible liquefied petroleum gas shortage in several large cities, stating that adequate steps have been taken to maintain domestic supply. Officials said LPG production has already been increased by around 10 percent to meet household demand.
Despite the assurances, reports from different regions suggest that many consumers are experiencing delays in both booking and delivery of LPG cylinders. At the same time, allegations of black-market activity involving gas cylinders have surfaced in certain areas, adding to public anxiety.
Restaurants and Hotels Report Commercial Cylinder Shortages
Hospitality industry representatives in cities such as Mumbai, Bengaluru, and Chennai have warned that restaurants and hotels are facing a severe shortage of commercial LPG cylinders. Industry bodies say the situation could disrupt operations if supplies are not restored quickly.
According to hospitality associations, many establishments rely entirely on commercial LPG cylinders for cooking and daily operations. With supplies becoming inconsistent, some businesses have already started limiting services, while others have warned that prolonged disruption may lead to temporary closures.
Retailers Point to Sudden Halt in Commercial Supply
LPG retailer groups have claimed that commercial cylinder supplies were abruptly halted beginning March 8. They say the government later restarted distribution, but only for essential institutions including hospitals and educational establishments.
Distributor associations explained that domestic LPG cylinders for households remain available and are being prioritised by authorities. However, the uncertainty surrounding commercial supplies has created operational challenges for businesses that depend on them.
Pawan Soni, general secretary of the Federation of LPG Distributors of India, said that commercial distribution can continue in a regulated manner after ensuring domestic demand is met.
He suggested a monitoring mechanism that includes financial audits and product tracking to ensure cylinders reach legitimate commercial customers. According to him, such oversight could prevent misuse and ensure that gas is used only for its intended purpose.
Situation Stable in Some Cities but Concerns Persist
Several gas agencies in New Delhi said they have not yet experienced any immediate shortage and that refill cylinders are still being delivered as scheduled. However, the uncertainty surrounding supply has made some consumers cautious.
Street food vendors and small eateries appear particularly worried. Many of these small businesses depend entirely on LPG cylinders to prepare food and run daily operations. Any disruption in supply could directly affect their income and the availability of affordable food options in urban areas.
Import Disruptions Prompt Government Response
Officials from the petroleum ministry indicated that the government is actively working with alternative suppliers to prevent supply gaps. One of the key concerns involves shipping disruptions through the Strait of Hormuz, a major route through which a significant share of India’s LPG imports travel.
To address potential shortages, India has already secured 20 cargo shipments of LPG from the United States using very large gas carriers. These shipments represent roughly 1 million tonnes of LPG.
However, the country typically requires about 40 such cargo shipments every month to meet its demand. This means an additional 20 shipments, equivalent to approximately 2 million tonnes, are still needed to fully meet the monthly requirement.
A government source said additional cargo deliveries from several countries have already started arriving, including both LPG and liquefied natural gas shipments. Officials believe these additional imports will help stabilize the supply chain in the coming weeks.
Domestic Production Efforts Intensified
Data from the Petroleum Planning and Analysis Cell indicates that India produced about 10.642 million metric tonnes of LPG between April 2025 and January 2026. In January 2026 alone, production stood at approximately 1.158 million metric tonnes.
Authorities say further steps are being taken to boost domestic production capacity in order to reduce reliance on imports and strengthen energy security.
Meanwhile, global crude oil prices showed some moderation. Brent crude slipped to about 91.9 dollars per barrel on Tuesday after crossing the 100-dollar mark earlier, while West Texas Intermediate crude was trading near 88.33 dollars per barrel.