LPG shortage fears grip major cities

Restaurants, industries depending on commercial LPG hit amid panic buying; govt steps up domestic production, says more imports on.

Several gas agencies in New Delhi say there is no immediate shortage and that refills were being distributed as usual. The anxiety is particularly visible among roadside food vendors who depend entirely on LPG for their business. Photo | Sayantan Ghosh

NEW DELHI: With LPG shortage fears gripping major cities, the government on Tuesday sought to reassure the public that arrangements have been made to meet domestic needs and that LPG production has been ramped up by 10%.

However, reports said people were facing delays in booking and delivery of LPG cylinders amid allegations of black-marketing of gas cylinders.

Hospitality associations in Mumbai, Bengaluru, and Chennai flagged acute shortage in commercial LPG cylinders, warning that restaurants and hotels may face shutdowns if supplies are not restored forthwith.

LPG retailers’ associations told TNIE that the government abruptly discontinued commercial supplies with effect from March 8. It later resumed supplies to essential sectors like hospitals and educational institutions.

Associations said while there is no shortage of LPG for households, uncertainty continues around commercial supplies. They requested LPG be made available to commercial establishments, after meeting household requirements.

“Such supply can be strictly monitored through audit, finance and product trails, ensuring that LPG is supplied only to registered commercial customers and that the product is utilised for its intended purpose,” said Pawan Soni, general secretary, Federation of LPG Distributors of India.

Suresh

Petroleum ministry officials said the government is engaging with alternative suppliers to offset potential shortages caused by disruptions in shipping through the Strait of Hormuz, through which a large portion of India’s LPG imports pass.

India has already secured 20 very large gas carrier (VLGC) cargoes, equivalent to 1 million tonnes, from the US. The country requires 40 VLGC cargoes each month, meaning it is still short of 20 cargoes—roughly 2 million tonnes—to fully meet its monthly requirement.

“We are receiving more LPG cargoes. LPG and LNG shipments from other countries have already started arriving,” a government source said.

According to the Petroleum Planning and Analysis Cell, the total LPG production in India during April 2025 to January 2026 was 10.642 million metric tonnes (MMT), while it was 1.158 MMT in January 2026 alone. Now, efforts are on to increase domestic production.

Meanwhile, Brent crude cooled to $91.9 on Tuesday­, a day after breaching the $100-mark, while WTI crude fell to $88.33 per barrel.