Delhi-NCR-based gas distributor Indraprastha Gas Limited has issued a notice to curtail gas supply to all restaurants in the National Capital Region by 20%, with immediate effect, in line with the Centre’s order on supply to priority sectors.
The restaurants received the notification on March 9 via email, with the restriction effective from 6 am today, a restaurant owner told Mint, requesting anonymity.
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The government regulation invokes the Essential Commodities Act 1955 (ECA) to control the distribution of gas cylinders and stop hoarding or unfair pricing.
What did Indraprastha Gas notice? Full text here
“Dear Customer, As per communication received from supplier M/s GAIL, supply to all industrial and commercial customers is restricted to 80% of their average consumption for the last six months with effect from 6:00 AM on 11 March 2026.”
“We dare to ask you to do your best to keep the draw within 80%,” he added.
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The notice said the reduction was in line with the ECA’s call to prioritize domestic LPG and select industrial customers over commercial users.
The hospitality and restaurant sector was hit hard
The hospitality and restaurant sector in major cities such as Bengaluru, Delhi, Hyderabad and Mumbai is facing a growing shortage of commercial LPG supplies. Industry groups say restaurants depend on frequent supplies of LPG and typically don’t keep large reserves, forcing some establishments to cut menus, cut operating hours or consider temporary closures.
For example, the lawyers’ canteen at the Delhi High Court has temporarily suspended the preparation and serving of main meals due to “non-availability of LPG cylinders” until further notice. “At this time, we have no information as to when the LPG supply will resume. We will resume the main course preparation as soon as the gas supply is available,” the announcement said.
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Manpreet Singh, honorary treasurer of the National Restaurant Association of India (NRAI) and owner of Zen and Fujiya restaurants, also based in Delhi, said his outlets are working to reduce LPG consumption by “streamlining and prioritizing meals that require less gas”.
For owners like Singh, the focus has shifted from service quality to basic survival. “The first thing guests ask now is if we even have food to serve,” he said.
With LPG supplies now temporarily restricted, food delivery platforms like Swiggy and Zomato may also see some impact as restaurants recalibrate services after checking their existing stocks.
What rules does the ECA impose?
Refineries are operating at full capacity and have been ordered to direct increased production exclusively to domestic consumers, according to an oil and gas ministry order dated March 9.
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The government also switched to rationing natural gas supplies on Tuesday, favoring compressed natural gas (CNG) vehicles for households that receive piped gas.
The booking interval has been extended from 21 to 25 days to reduce backlog.
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.
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The petroleum ministry has set up a three-member committee comprising OMC executives to review requests for LPG supply from restaurants, hotels and other non-domestic sectors.
Why is LPG supply affected? What is the current status?
India consumes about 31.3 million tonnes of LPG annually, of which about 62% is imported. Much of these imports normally move through the Strait of Hormuz, where conflict-related disruptions in West Asia have tightened supplies.
Iran has restricted its use of the strategic waterway amid attacks from the United States and Israel. The chokepoint handles about 20 mbpd of oil – about one-fifth of global consumption – and about one-fifth of global LNG trade, mainly from Qatar.
Read also | Domestic LPG supply cycle remains 2.5 days: Petroleum Ministry
At a press conference today, the Petroleum Ministry assured that the measures taken by the Center have led to a 25% increase in LPG production in India. “India’s oil stocks remain secure. Our daily consumption is about 55,000 barrels. Due to diversified procurement, the volumes we have secured today are in excess of the volumes that would normally arrive through the Strait of Hormuz during this period,” said Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum and Natural Gas, at a joint press briefing.
Furthermore, the ministry informed that oil is obtained from routes outside the Strait of Hormuz. Deliveries secured by alternative routes outnumber those that have been cut, she said. “Our gas companies have acquired cargoes of LNG from new sources. Two cargoes of LNG are on their way to India,” Sharma added.
In a statement on Wednesday, the ministry also assured households that there is “no need to panic” when booking LPG. “The normal delivery cycle for a household remains 2.5 days,” she said, urging people not to rush to book LPG cylinders. “As a temporary demand management measure, the minimum gap between LPG bookings has been increased from 21 days to 25 days,” she said.
