The Union government has urged consumers across India to refrain from panic booking LPG cylinders, seeking to contain rising public anxiety over potential fuel shortages triggered by the escalating conflict in West Asia. Disruptions to shipping lanes near the Strait of Hormuz a critical chokepoint for global energy trade have contributed to a spike in demand and reported friction along India’s LPG supply chain, even as authorities insist that national fuel stocks remain adequate.
Commercial Sector Bears the Brunt
The supply pressure has hit the hospitality and commercial sectors hardest. Restaurants, hotels, and small businesses across major cities including Bengaluru, Mumbai, and Chennai are reporting significant delays in commercial LPG cylinder deliveries and in several cases, complete stoppages. Industry bodies have cautioned that a substantial number of establishments could be forced to suspend operations or scale back menus if supply chains are not restored swiftly. Many eateries have already shifted to alternatives such as induction cookers, electric ovens, and traditional coal-fired tandoors to keep their kitchens running.
Government Steps In with Essential Commodities Act
To stabilise the market, the government has invoked the Essential Commodities Act, 1955, triggering a series of interventions. Oil marketing companies have been directed to prioritise meeting household LPG demand before catering to commercial requirements. Domestic refineries have been ordered to maximise LPG output by redirecting hydrocarbon streams previously allocated to other industrial uses. Additionally, a new mandate has extended the minimum gap between domestic cylinder refills from 21 days to 25 days, a move aimed at curbing hoarding and preventing artificial scarcity.
Prices Rise Amid Supply Squeeze
The supply-side strain has coincided with notable price increases. Effective March 7, the price of a 14.2-kg domestic LPG cylinder was raised by ₹60, bringing the Delhi rate to ₹913. Commercial cylinders saw a steeper revision of approximately ₹115, now priced at ₹1,883 in the capital.
Senior government officials have maintained that India’s energy import strategy has been diversified to reduce dependence on any single transit corridor. They have continued to appeal to citizens to trust in the sufficiency of national reserves and avoid unnecessary bookings that add to the logistical strain on distributors.
