India is currently witnessing a growing shortage of commercial LPG cylinders across several major cities.
Restaurants, hotels and catering businesses in cities like Mumbai, Bengaluru, Delhi and Kolkata have reported
irregular LPG supplies, raising concerns about disruptions in food services and rising operational costs.

However, government sources have assured that there is no need for panic. India is expanding its energy sourcing
strategy and increasing imports from 40 countries to maintain stable fuel supply during the ongoing
West Asia geopolitical tensions.

Key Highlights of the LPG Supply Situation

• Commercial LPG shortage reported in major Indian cities.
• Restaurants and hotels facing difficulties in obtaining cylinders.
• Government prioritizing domestic LPG supply for households.
• India expanding oil sourcing from 27 to 40 countries.
• Refineries instructed to increase LPG production.
• LPG booking interval extended from 21 days to 25 days.

Why is LPG Supply Getting Disrupted?

India consumes around 31.3 million tonnes of LPG annually, and nearly
62% of this demand is met through imports. A large portion of these imports normally
pass through the Strait of Hormuz, one of the most critical global oil shipping routes.

The ongoing West Asia conflict involving Iran, Israel and the United States has disrupted
shipping routes and oil production in the region. Several Gulf countries have reduced output
while shipping constraints have tightened global LPG supply chains.

As a result, India has temporarily prioritized domestic household LPG supply, leading to
reduced availability of commercial cylinders used by restaurants and hotels.

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Impact on Restaurants and Hospitality Sector

According to the National Restaurant Association of India (NRAI), the sector could lose
₹1,200–₹1,300 crore per day if LPG supply disruptions continue.

Government Measures to Stabilize LPG Supply

• Expansion of crude oil sourcing from 27 to 40 countries.
• Instructions to refineries to increase LPG production.
• Monitoring to prevent hoarding and black marketing.
• Domestic LPG supply prioritized for households.
• Committee formed to review LPG supply requests from commercial sectors.

Union Petroleum Minister Hardeep Singh Puri has also initiated discussions with
several potential supplier countries to secure additional energy supplies.

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Reliance Industries Increasing LPG Production

Reliance Industries announced that its Jamnagar refinery complex will maximize
LPG production to support the domestic market. The company is also redirecting gas
from the KG-D6 fields in the Bay of Bengal to priority sectors to ensure stability
in cooking gas supply.

Latest LPG Cylinder Prices in Major Cities (March 2026)

How Long Could the LPG Shortage Last?

Energy experts believe that the LPG shortage is likely to ease once India
successfully diversifies its supply sources and global shipping routes stabilize.
The government has already started exploring additional supply partnerships with
countries such as Algeria, Australia, Canada and Norway.

Meanwhile, authorities continue monitoring the situation closely to ensure that
Indian households and critical sectors do not face major disruptions in LPG supply.

Conclusion

While the current LPG shortage is affecting the hospitality industry in several
cities, the government has assured that there is no immediate threat to domestic
cooking gas availability. With increased refinery output, expanded import
partnerships and stricter monitoring of supply chains, authorities aim to
stabilize the LPG market in the coming weeks.

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