LPG Supply Disruptions Across India as Global Energy Tensions Trigger Shortages in Commercial Gas

Yugcharan News / 13 March 2026

India is facing growing disruptions in the supply of commercial liquefied petroleum gas (LPG) as the ongoing geopolitical conflict in West Asia continues to affect global energy markets. The shortage has begun to impact multiple sectors across the country, particularly hospitality businesses, food services, and small enterprises that depend heavily on commercial gas cylinders for daily operations.

Authorities have stated that domestic LPG supply remains stable, but reports from several states suggest that businesses relying on commercial cylinders are experiencing delays and shortages. The situation has triggered concern among restaurant operators, hotel associations, and small vendors, while governments at both central and state levels are closely monitoring the situation.

Energy experts attribute the supply pressures to disruptions in international energy transport routes, particularly near the Strait of Hormuz, through which a significant portion of global crude oil shipments passes.

Government Says Crude Supply Situation Stable

Speaking in Parliament, Hardeep Singh Puri said India’s crude oil supply chain remains secure despite global disruptions. He noted that the country has diversified its import sources significantly over the past two decades.

According to the minister, India previously depended heavily on shipments passing through the Strait of Hormuz, but alternative supply arrangements have been expanded in recent years.

He stated that India now imports crude oil from around 40 countries, compared with 27 countries in the mid-2000s. This diversification, officials say, has helped reduce dependence on a single shipping route.

Government representatives also emphasized that refineries across the country are operating at high capacity and that daily LPG cylinder deliveries continue at large scale.

Officials urged citizens not to engage in panic buying, warning that unnecessary stockpiling could strain distribution systems and create artificial shortages.

Hospitality Sector Among Worst Hit

Despite assurances regarding domestic supply, the commercial LPG shortage has severely affected the hospitality industry in several states, particularly Kerala.

Hotel and restaurant associations say the availability of commercial gas cylinders has dropped significantly in recent days, forcing many businesses to temporarily suspend operations.

Industry representatives claim that around 40 percent of restaurants in Kerala may shut down temporarily if the situation persists.

In Kochi, reports indicate that more than 100 hotels have already stopped operations due to lack of cooking gas. Many establishments that remain open have reportedly reduced their menus and limited food preparation to conserve available gas supplies.

Restaurant operators say switching to alternative fuels such as firewood is difficult in urban areas due to infrastructure limitations and safety regulations.

Some business owners have also alleged that private suppliers are charging significantly higher prices for cylinders during the shortage.

IT Companies Consider Work-From-Home Option

The shortage has also affected the technology sector in Thiruvananthapuram, where several companies operating in the Technopark campus are reportedly considering a temporary shift to remote working arrangements.

Employee representatives say that food courts and cafeterias within the IT park have reduced operations due to lack of cooking gas.

Some food counters have already stopped functioning, while others are operating with limited menus. If the supply disruption continues, certain companies may consider implementing work-from-home policies to reduce dependency on onsite food services.

Although no company has formally announced a shift yet, employee welfare groups say discussions are underway.

Impact Spreads to Film Industry

The LPG shortage has also begun affecting film production activities in Kerala. Representatives from the regional film industry say that ongoing movie shoots rely on catering services that require commercial gas cylinders.

According to industry estimates, around 18 film projects are currently being filmed across the state.

Producers say food supply for cast and crew could become difficult if the gas shortage continues for more than a few days. Some production units are reportedly reviewing alternative arrangements to ensure continuity of filming schedules.

Panic Buying Strains LPG Booking Systems

In Telangana, officials reported that a surge in LPG bookings has placed significant pressure on distribution systems.

Industry representatives say many households have begun placing refill orders earlier than usual due to concerns about supply disruptions.

According to distributors, this sudden increase in demand has slowed down booking systems and delivery schedules in several areas.

However, officials clarified that domestic LPG supply remains adequate and that the delays are largely caused by increased booking volumes rather than actual shortages.

The state government has called meetings with oil marketing companies to assess the situation and ensure stable supply to consumers.

Economic Impact Visible in Markets

The ongoing energy crisis has also affected financial markets. On Friday, Indian benchmark stock indices experienced a decline amid global uncertainty linked to rising oil prices.

Early trading saw the BSE Sensex fall by nearly one percent, while the Nifty 50 recorded a similar decline.

Currency markets also reacted to the global developments, with the Indian rupee weakening against the US dollar during early trading hours.

Market analysts say rising crude oil prices typically increase inflationary pressure in oil-importing economies such as India.

Oil Prices Surge Amid Global Conflict

International crude oil prices have climbed sharply since the conflict in West Asia intensified in late February.

Energy traders report that oil prices recently approached the $100 per barrel mark, with some analysts warning that prolonged instability could push prices even higher.

The situation escalated after geopolitical tensions affected shipping activity through the Strait of Hormuz, a route considered one of the world’s most important energy transport corridors.

At the same time, the United States government recently announced a temporary authorization allowing certain countries to purchase Russian oil shipments currently stranded at sea.

Analysts say the decision aims to stabilize global energy markets and reduce price volatility during the crisis.

Political Reactions in India

The LPG shortage has also triggered political reactions in India.

Opposition leaders including Rahul Gandhi and Priyanka Gandhi Vadra staged protests within the Parliament complex, seeking clarification from the government regarding the reported shortage of commercial gas cylinders.

Some opposition figures have questioned the government’s claim that there is no shortage, arguing that ground reports from several states indicate difficulties in obtaining LPG cylinders.

Meanwhile, the government has reiterated that domestic supply remains stable and that emergency measures have been implemented to maintain energy security.

Government Appeals Against Panic Buying

Authorities have appealed to citizens to avoid panic buying or hoarding of LPG cylinders.

Officials said that over 50 lakh cylinders are currently being delivered daily across the country, and domestic LPG production has reportedly increased by nearly 28 percent to meet rising demand.

The government has also directed states to monitor distribution networks closely and take strict action against black-marketing or illegal storage of LPG cylinders.

In several districts across India, local administrations have conducted inspections and raids to prevent misuse of domestic cylinders for commercial purposes.

Long-Term Energy Concerns

Energy experts say the current LPG shortage highlights the vulnerability of global supply chains during geopolitical conflicts.

India imports a significant portion of its energy requirements, making it sensitive to disruptions in international oil transport routes.

Analysts believe the crisis could accelerate discussions about expanding alternative energy sources, increasing domestic gas production, and promoting electric cooking technologies.

In recent days, demand for electric induction stoves has surged in many cities as households look for backup cooking options.

Situation Under Close Monitoring

Government agencies, oil marketing companies, and state administrations continue to monitor the LPG supply situation closely.

Authorities have said they are coordinating across multiple ministries to ensure stable energy supplies, maritime security, and uninterrupted fuel distribution.

While officials maintain that domestic supply remains sufficient, businesses dependent on commercial LPG are hoping for a quick improvement in availability to prevent prolonged disruptions.

Energy experts note that the situation will largely depend on developments in the ongoing geopolitical conflict and global oil supply routes in the coming weeks.