Sukumar Sah
NEW DELHI: Amid escalating tensions in the Gulf region due to the US and Israel attack on Iran, its retaliatory strikes on Kuwait, Qatar, Bahrain, Dubai, Abu Dhabi and Saudi Arabia, gas supplies through the Strait of Hormuz have come to a standstill. Approximately 140 to 150 commercial vessels, including container ships and tankers, are reportedly trapped inside the Persian Gulf, unable to exit.
Fearing shortages, the Indian Government has moved quickly to safeguard household access to cooking gas by directing refineries to boost production of liquefied petroleum gas (LPG) and prioritise domestic consumption.
The urgency has been heightened by a sharp rise in LPG cylinder prices — commercial cylinders used by restaurants have jumped by roughly ₹200–₹250 in several cities in recent weeks, while domestic LPG prices have also edged higher — adding to pressure on both household budgets and the hospitality sector.
LPG shortage feared over disruption in supplies from Gulf; Govt steps in; household supplies on priority
At the same time, shortages of liquefied natural gas (LNG) and piped natural gas (PNG) in several cities have begun disrupting kitchens in homes and eateries, raising fears that cooking fuel supplies could tighten further if the geopolitical crisis deepens.
The ripple effects are also being felt beyond households. Disruptions in LNG supplies —much of which comes from West Asia — have affected gas availability for fertiliser plants, forcing some units to cut output and increasing reliance on imported fertilisers to meet demand from the farm sector.
With India among the world’s largest fertiliser consumers, any prolonged disruption could raise import costs and put additional pressure on the Government’s fertiliser subsidy bill.
Against this backdrop, the Ministry of Petroleum and Natural Gas announced that oil refineries across the country have been instructed to ramp up LPG output and channel the additional production specifically toward household supplies. The move is aimed at insulating Indian consumers from supply shocks triggered by the escalating conflict involving Iran and Israel.
“In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use,” the Ministry said in an official statement.
The Government is also working closely with state-run oil marketing companies — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum — to monitor cylinder stocks and streamline distribution across states. Senior officials said daily reviews are being conducted to track refinery output, imports and delivery schedules.
The Government has also introduced a 25-day inter-booking period for LPG refills to prevent panic buying, hoarding and black-market diversion of subsidised cylinders. Officials say the measure is intended to ensure that available supplies are distributed evenly among households during the current period of uncertainty.
India is one of the world’s largest consumers of LPG, with more than 320 million domestic connections, and ensuring uninterrupted cooking fuel supply has been a key policy priority.
Officials emphasised that despite the geopolitical turmoil, energy imports into the country remain stable. Union Petroleum Minister Hardeep Singh Puri said the Government was closely monitoring developments and had already activated contingency plans.
“Uninterrupted energy imports are flowing into India from routes that are not impacted by the conflict and we are taking all necessary steps to ensure availability of energy to our citizens,” Puri said after discussions with energy officials and industry representatives.
The Government ’s swift intervention by way of boosting domestic production, regulating bookings and prioritising essential sectors appears to have stabilised the situation, underscoring New Delhi’s ability to manage energy security even during turbulent geopolitical conditions
To balance competing demands, the Government has also created a prioritisation framework for non-domestic users of LPG. Imported LPG supplies are being directed first to essential services such as hospitals and educational institutions, while other commercial sectors are being assessed on a case-by-case basis.
A three-member committee of executive directors from state-owned oil marketing companies has been set up to review requests for LPG supplies from hotels, restaurants and other industries.
The policy shift has temporarily affected the availability of commercial LPG cylinders in several cities, including Mumbai, Bengaluru and Kolkata, where hospitality associations have reported delays in deliveries. In some areas, refill waiting periods have stretched from two to eight days.
However, Government officials say such short-term adjustments are necessary to ensure that household kitchens remain unaffected during the crisis.
India’s diversified import network and large refining base gives policymakers room to respond quickly to shocks. “India’s large refining system gives the Government flexibility to adjust fuel output during supply disruptions,” said energy policy analyst Narendra Taneja.
For now, the Government ’s swift intervention — boosting domestic production, regulating bookings and prioritising essential sectors — appears to have stabilised the situation, underscoring New Delhi’s ability to manage energy security even during turbulent geopolitical conditions.
Energy experts say the Government ’s quick policy response reflects lessons learned from previous global energy crises. According to Vandana Hari, founder of Vanda Insights, governments across Asia are increasingly aware that disruptions in the Middle East can rapidly ripple through LPG markets.
“India has one of the world’s largest LPG distribution systems, so the key challenge during a crisis is managing demand and ensuring equitable access. Measures such as refill controls and prioritisation help prevent panic buying,” she said.
Officials said the Government was also closely monitoring international shipping routes and inventory levels to ensure adequate supplies in the weeks ahead. India maintains strategic reserves and commercial inventories that can cushion short-term shocks to the energy system.
Meanwhile, hospitality and food industry bodies have urged authorities to restore commercial LPG supplies as soon as conditions stabilise. However, policymakers maintain that protecting household consumption must remain the immediate priority.