LPG Shortage Crisis Hits Indian Restaurants Hard Amid Middle East Tensions

PM Modi's Action

In response to this pressing issue, Prime Minister Narendra Modi convened a meeting on Tuesday with senior ministers to address the potential impact on Indian consumers due to a conflict in West Asia that has disrupted petroleum supplies and affected oil prices.
Given India’s heavy reliance on imported crude oil and natural gas, the Prime Minister is acutely aware of the situation and is taking measures to shield consumers from rising fuel costs. He emphasized the need for coordinated efforts among ministers to ensure a steady supply of petroleum products and LPG.

Ministry Forms Review Panel

Reports of shortages in various cities prompted the Union petroleum ministry to announce the formation of a three-member committee tasked with reviewing requests for LPG supply from restaurants, hotels, and other industries.
The ministry has prioritized domestic LPG distribution for households and established a 25-day inter-booking period to prevent hoarding and black market activities. For non-domestic users, hospitals and educational institutions will receive priority.

HPCL Steps Up Production

HPCL has also shared details about the measures being taken to address the LPG shortage stemming from the West Asia conflict. The company is increasing LPG output and ensuring priority supply to domestic consumers, as well as essential non-domestic sectors like hospitals and schools.
HPCL indicated that requests from other non-domestic sectors will be assessed by a committee of Oil Marketing Company Executive Directors and prioritized based on need and availability.

Import Hunt

India consumes approximately 31.3 million tonnes of LPG annually, with 62% of this amount imported. Most of these imports typically transit through the Strait of Hormuz, where disruptions caused by the West Asia conflict have tightened supplies. The situation is further complicated by limited access to this strategic waterway, particularly for Iran, due to actions taken by the United States and Israel. As a result, Asian countries, including India, are feeling the adverse effects.
To ease its dependence on domestic markets, India is actively seeking new partnerships for LPG supplies with countries such as Algeria, Australia, Canada, and Norway.