India is facing its worst LPG supply crisis in recent memory, with the geopolitical conflict in West Asia between Iran, Israel, and the United States severely disrupting the country’s cooking gas imports. In response, the Union Government has taken unprecedented emergency measures — halting the supply of commercial LPG cylinders, directing refineries to boost domestic production, and asking states to crack down on hoarding and black marketing. Long queues have been reported outside LPG agencies in Delhi, Noida, Lucknow, Bengaluru, Mumbai, Kolkata and Bhubaneswar as citizens rush to secure cylinders.
The Scale of the Crisis
India imports approximately 85-90 per cent of its LPG requirement from Gulf nations. The war between the US-Israel alliance and Iran has effectively paralysed shipping through the Strait of Hormuz, the narrow waterway through which a quarter of the world’s oil and much of the region’s LPG passes. With Iranian mine-laying vessels destroyed by the US Navy and commercial tankers avoiding the route, LPG tankers headed for India have been stranded or rerouted at enormous cost and delay.
The supply crunch has manifested quickly on the ground. In Mumbai, Bengaluru, and Kolkata, restaurants, bakeries, and hotels that rely on commercial 19 kg LPG cylinders have been unable to source supplies since early March 2026. The supply of Non-Domestic Non-Exempted (NDNE) LPG cylinders — the large commercial-grade cylinders used by the hospitality industry — has been completely halted by the Ministry of Petroleum and Natural Gas. Hospitality associations have warned of “catastrophic closures” if supplies are not restored within days.
Government’s Emergency Response
The Ministry of Petroleum and Natural Gas under Union Minister Hardeep Singh Puri has moved on several fronts simultaneously. First, it has issued orders to all oil refineries across the country to ramp up LPG production and channel the additional output specifically to domestic household consumption. Second, it has introduced a new 25-day inter-booking period, which means consumers must wait 25 days after their last cylinder booking before they can book a new one. This measure is designed to prevent panic buying and hoarding.
Third, the ministry has constituted a special three-member committee of Executive Directors from Oil Marketing Companies (OMCs) — Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum — to review individual representations from restaurants, hotels, and other commercial users seeking LPG supply. Only hospitals and educational institutions have been exempted from the commercial supply halt. The government has also asked state governments to take strict action against fuel hoarding and black marketing, with reports of black-market 14.2 kg cylinders being sold at double and triple the official price in several cities.
Restaurants and Hotels in Distress
For India’s restaurant and hotel industry, which employs millions of workers across urban and semi-urban areas, the commercial LPG crisis is potentially catastrophic. Many mid-size and small restaurants use commercial LPG as their sole cooking fuel. With supplies frozen, many have already temporarily closed, while others have switched to wood-fire cooking, electric induction plates, or are absorbing the cost of buying domestic cylinders at higher per-unit prices illegally.
The National Restaurant Association of India (NRAI) and several state hotel associations have appealed to the government to provide at least a minimum supply of commercial cylinders to prevent mass closures. Food delivery platforms have reported disruptions in availability from certain restaurant partners, and food prices in several cities have started rising.
Household Supply: The Priority
The government’s clear priority is to protect household supply of the 14.2 kg domestic cylinder used for cooking by the vast majority of Indian families. Union Minister Hardeep Singh Puri reassured the public that domestic supply channels remain active and that the government is committed to ensuring no household faces a shortage of cooking gas. “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 stated.
Conclusion
India’s LPG crisis is a direct product of the West Asia war and represents one of the most significant energy security tests the country has faced in years. The government’s emergency measures — halting commercial supply, boosting refinery output, and introducing a booking window restriction — are the right short-term response. However, the medium-term challenge is to rapidly diversify India’s LPG sourcing and build strategic reserves to cushion against future disruptions from conflict-prone regions. The crisis underscores why energy security must be treated as a national security priority.