Facing potential LPG supply disruptions due to global tensions, India has implemented a 25-day gap between gas cylinder bookings to manage resources and prioritise essential services.
Key Points
- India mandates a 25-day gap between LPG cylinder bookings to address potential supply shortages.
- Global tensions, particularly in the Strait of Hormuz, are disrupting LPG shipments to India.
- The government prioritises LPG supply to essential non-domestic sectors like hospitals and educational institutions.
- Domestic LPG production is being increased to offset supply constraints and ensure availability for household consumption.
Cooking gas consumers across the country will now have to wait at least 25 days to book their LPG cylinder refill, up from the current 21 days, after the government increased the mandatory inter-booking gap to manage an emerging supply crunch.
The ministry of petroleum and natural gas in a tweet on X said, 'The step is aimed at preventing hoarding and black-marketing as global disruptions threaten LPG supplies to the country.'
'Non-domestic supply from imported Liquefied Petroleum Gas is being prioritised to essential non domestic sectors such as hospitals and educational institutions,' the statement added.
Fallout from Strait of Hormuz disruptions
The restriction comes amid the ongoing conflict between Iran and the United States/Israel, which has affected energy shipments passing through the Strait of Hormuz near Iran.
The narrow waterway, located between Iran and Oman, is one of the world's most critical energy corridors, through which a large share of global oil and LPG shipments pass.
About 50 to 60 percent of India's Liquefied Natural Gas supplies and 80 to 85 percent of LPG shipments pass through the Strait of Hormuz.
A key route for oil and gas exports from the Gulf, the strait has seen severe shipping disruptions following the escalation of tensions.
On Monday, US President Donald Trump stated, 'The US would hit Iran much harder if Iran stops the oil flow through the Strait of Hormuz.'
With vessels unable to move normally through the passage, several countries dependent on Gulf energy imports, including India, are facing supply constraints.
Oil refineries told to increase LPG output
Against this backdrop, the petroleum ministry has issued directions to oil refineries to increase LPG production wherever possible.
Officials said any additional LPG produced domestically will be diverted for household consumption to ensure that cooking gas remains available for domestic users.
The shortage comes in the wake of escalating tensions and military confrontation between Iran and United States-Israel, which has severely affected shipping through the Strait of Hormuz.
Commercial users, particularly restaurants and hotels, are among those hardest hit by the restrictions.
Hotel and restaurant associations in Chennai and Bengaluru say many establishments have already run out of LPG cylinders.
Industry representatives warn that several kitchens are struggling to operate normally, while some smaller restaurants have been forced to suspend services due to the shortage.
Government Response to LPG Shortage
To manage demands from commercial sectors, the government has formed a committee comprising three executive directors from the oil marketing companies.
The panel will review requests from restaurants, hotels and other industries seeking LPG supply and determine allocations based on priority and availability.
Officials say the supply situation will depend largely on developments in the Iran-US conflict and whether shipping through the Strait of Hormuz resumes soon.
Until then, India is likely to continue balancing limited LPG supplies between households and essential services.
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