Winning Bizness Desk
Mumbai.Residents across several Indian cities are reporting unusual delays in receiving domestic LPG cylinders, with many consumers struggling to book or obtain cooking gas amid growing supply disruptions linked to geopolitical tensions in West Asia. What started as sporadic complaints has now turned into a widespread concern in many states, raising questions about how long India’s LPG reserves can sustain demand if the conflict affecting global energy routes continues.
Cooking gas shortages surface in several states
The crisis has begun reflecting at the consumer level. Aditya, a resident of Bhopal, booked an LPG cylinder through an IVRS call on March 6. Normally, the cylinder would arrive within a day. However, even after three days, the delivery did not reach his home. When he dialed the IVRS system again, the number was reported invalid.
He then visited the gas agency office, where chaotic scenes unfolded. Many customers complained that bookings were not going through, while others said they had been waiting for more than a week for delivery. Some consumers were seen willing to pay extra just to secure a cylinder. After repeated visits and persuasion, Aditya finally managed to get one. Similar experiences are now being reported by thousands of households across the country.
India’s dependence on LPG imports remains high
India consumes about 33 million metric tonnes of LPG annually, which translates into nearly 235 crore cylinders every year. On average, the country uses around 64 lakh cylinders every day.
Nearly 88 percent of this LPG is used in households, while the remaining 12 percent is consumed by commercial establishments such as hotels, restaurants and industries. However, India imports roughly 60 percent of its LPG requirement, while the rest is produced in domestic refineries.
With supply chains now disrupted due to escalating tensions between the United States, Israel and Iran, LPG imports from the Gulf region have been affected. This has triggered supply concerns across multiple states.
Several states have begun experiencing visible shortages in both domestic and commercial LPG supply.
Key ground reports include:
Madhya Pradesh :Hotels and restaurants face crisis due to shortage of commercial cylinders, while long queues are visible outside domestic LPG agencies.
Rajasthan :Commercial cylinder supply has reportedly stopped, with cylinders that usually cost Rs 1911 in Jaipur allegedly being sold for up to Rs 2500 in the black market.
Uttar Pradesh :Consumers report waiting four to five days after booking for cylinder delivery, with police deployed at distribution centres in districts such as Gorakhpur and Siddharthnagar.
Bihar :Commercial cylinder bookings have remained closed for three days, affecting restaurants and food businesses.
Punjab :Server outages have halted domestic cylinder bookings in Ludhiana and Faridkot, while commercial supply has stopped in several districts.
Restaurant sector begins to feel the pressure
The impact is also being felt in major urban centres where restaurants depend heavily on commercial LPG cylinders.
Mumbai and Pune :Nearly 20 percent of hotels and restaurants have either shut down temporarily or are operating partially.
Bengaluru and Hyderabad :Several restaurants say they have not received commercial cylinders for two to three days.
- Some eateries have limited operations to serving only tea and coffee due to gas shortages.
Reports of black marketing of cylinders have also started emerging in certain cities.
What LPG is and how it is produced
Liquefied Petroleum Gas, or LPG, is primarily a mixture of two gases: propane and butane. Unlike natural gas, LPG is not extracted directly from underground in usable form.
Instead, it is produced as a by-product during petroleum refining processes. There are two primary sources of LPG production.
First, LPG can be extracted during the processing of crude oil and natural gas obtained from oil and gas wells. When crude oil or natural gas is brought to the surface, propane and butane gases are separated and refined into LPG.
Second, LPG is produced during crude oil refining. When crude oil is heated in refineries to produce petrol, diesel and kerosene, certain gases released during the process are captured and converted into LPG. Major refineries of companies such as Reliance, Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum in India undertake this process.
The gas is stored in cylinders under high pressure, which converts it into liquid form, allowing larger quantities to be stored in compact containers.
Why the West Asia conflict disrupts LPG supply
A major reason behind the supply disruption lies in the strategic Strait of Hormuz, a crucial maritime route through which petroleum and LPG shipments from Gulf countries reach India.
Countries such as the UAE, Qatar, Saudi Arabia and Kuwait export gas and petroleum products through this narrow sea passage. However, the ongoing conflict involving the United States, Israel and Iran has significantly reduced shipping movement in the region.
Before the escalation, around 153 ships used the route daily. That number has now dropped to nearly 13 vessels, severely affecting supply chains.
According to India’s Shipping Ministry, 28 Indian-flagged ships are currently in the Persian Gulf region. Of these, 24 vessels with 677 crew members are located west of the Strait of Hormuz, while four ships carrying 101 Indian sailors remain near the strait.
Iran’s Islamic Revolutionary Guard Corps has warned that if attacks against Iran continue, it could block the movement of oil through the strait completely.
Recent maritime incidents raise concerns
Shipping risks have also intensified. On March 11, a cargo ship from Thailand heading towards India was attacked near the Strait of Hormuz. The strike triggered a fire in the vessel’s engine room.
Oman’s navy rescued 20 out of the 23 crew members onboard, though the identity of the attackers has not yet been confirmed. Such incidents have heightened concerns about safe maritime transportation of energy supplies.
India’s current LPG stock position and buffer estimates
According to media estimates, India currently holds roughly a 10-day buffer stock of LPG. This limited reserve has prompted the government to activate the Essential Commodities Act to prevent hoarding and regulate supply priorities.
The Petroleum Ministry has also directed both government and private refineries to increase production. Domestic LPG output has reportedly risen by around 25 percent following these instructions.
Two key estimates about India’s energy reserves are currently being discussed:
- Estimate one: Considering existing company stocks and shipments already en route to India, the country may manage supplies for about 40 to 45 days even if shipments through the Strait of Hormuz stop completely.
- Estimate two: When crude oil reserves and strategic petroleum reserves are included, India could potentially sustain energy needs for nearly eight weeks.
However, Petroleum Minister Hardeep Singh Puri has assured that domestic LPG supply remains adequate and urged people not to panic.
Government exploring alternative global suppliers
If the conflict prolongs and Gulf supply remains restricted, the government is evaluating alternate sources for LPG imports.
Possible suppliers under consideration include:
- Norway
- United States
- Australia
- African nations such as Algeria, Nigeria and Angola
However, shipments from these distant sources take significantly longer to reach India. Shipping industry estimates suggest that transporting gas from the United States or Norway could take nearly two months.
Meanwhile, India has also placed large orders for Russian crude oil. Around 2.2 crore barrels of Russian crude are expected to arrive at Indian ports by the end of this week, with an additional order of 3 crore barrels placed by companies such as Reliance and Indian Oil.
India currently imports crude oil from about 40 countries. Officials say about 70 percent of the country’s crude now arrives through routes outside the Strait of Hormuz, compared to 55 percent earlier.
Options households can consider during LPG shortage
If LPG shortages intensify, households may need to consider temporary alternatives for cooking.
Possible options include:
- Induction cooktops that run on electricity and consume roughly one unit of power for about 30 minutes of cooking.
- Solar cookers that use sunlight and require no electricity or gas after initial installation.
- Electric pressure cookers that can cook rice, lentils and vegetables while consuming minimal electricity.
- Small biogas plants that generate gas from organic waste such as vegetable peels, leftover food and cow dung, providing cooking fuel for 15 to 20 days each month.
These alternatives could help households manage cooking needs if LPG supplies face prolonged disruptions.
