LPG Shortage News Today LIVE (March 11): Hotels and restaurants in major Indian cities – Bengaluru, Mumbai, Chennai, Jaipur – were forced to close their kitchens after commercial LPG supplies were suddenly suspended due to geopolitical disruptions to shipping through the Strait of Hormuz.
A geopolitical firestorm thousands of kilometers away has now hit the Indian hospitality sector where it hurts the most – the kitchen.
Why is India facing shortage of LPG?
The disruption of shipping through the Strait of Hormuz, triggered by the escalating conflict between Iran, Israel and the United States, has tightened LPG supplies to India. The country imports roughly 62% of its 31.3 million tonnes of annual LPG consumption, much of it through this choke point. Iraq cut production from its southern oil fields by 70% and Kuwait declared force majeure.
The government invokes ECA and ESMA
New Delhi responded by invoking the Essential Commodities Act (ECA), which prioritized LPG for households over commercial users. Refineries are operating at full capacity and are focused on channeling increased production exclusively to domestic consumers. The booking interval has been extended from 21 to 25 days to reduce backlog.
The government also switched to rationing natural gas supplies on Tuesday, favoring compressed natural gas (CNG) vehicles for households that receive piped gas.
The order establishes a four-tier priority system for gas allocation, with supplies to lower-priority sectors – including petrochemical plants, power plants and oil refineries – restricted to cover base demand.
Bear the Brunt hotels and restaurants
The Bangalore Hotels Association issued a stark warning: “Supply of gas cylinders for commercial use has been stopped from today. Essential services like senior citizens, students and hospitals depend on it. Union Ministers are expected to act immediately to restore commercial gas supply.”
LPG Association national vice-president RK Gupta confirmed the suspension and added, “Further booking will be allowed after the 25-day inter-booking period to avoid hoarding and there is no shortage as claimed by the oil companies.”
Relief Committee formed in India, new resources sought
Union Petroleum Minister Hardeep Singh Puri has constituted a three-member committee of executive directors from IOC, HPCL and BPCL to address complaints in the hospitality sector. India is also in talks with Algeria, Australia, Canada and Norway for alternative LPG supplies.
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