Escalating tensions in West Asia, particularly the disruption of shipping lanes in the Strait of Hormuz, have significantly hit India’s Liquefied Petroleum Gas (LPG) supply, as the region accounts for nearly 50% of the country’s imports.
In response, the Government of India has invoked emergency powers under the Essential Commodities Act to prioritise domestic households while halting or curbing supplies to the commercial sector. To prevent panic-buying and hoarding, the Ministry of Petroleum has also extended the mandatory inter-booking period for domestic cylinders from 21 to 25 days.
While the government maintains that stocks are stable, the crisis has already led to a price hike of ₹60 for domestic cylinders and approximately ₹115 for commercial ones.
Prioritising Kitchens Amid Global Turmoil
The Ministry of Petroleum and Natural Gas (MoPNG) has directed domestic oil refineries to maximise LPG production by diverting propane and butane streams away from petrochemical use. According to official statements, refineries have already ramped up production by approximately 10% to meet the 31 million tonnes of annual national demand.
Despite these efforts, the hospitality sector in major metros like Bengaluru, Mumbai, and Kolkata is facing a severe shortage, with some eateries warning of temporary shutdowns. Union Petroleum Minister Hardeep Singh Puri sought to reassure the public on X (formerly Twitter), stating, “Our priority is to ensure the availability of affordable and sustainable fuel for our citizens. There is no shortage of energy in India, and there is no cause of worry for our energy consumers.”
Navigating Supply Chains And Vulnerabilities
India’s energy security is deeply tied to the Geopolitical stability of West Asia, with nearly 65-80% of its LPG imports passing through the vulnerable Strait of Hormuz. To mitigate long-term risks, the government is diversifying its sources, recently signing a contract to import 2.2 million tonnes of LPG from the US Gulf Coast and exploring additional supplies from Russia, Canada, and Australia.
However, the immediate “risk premium” on freight and insurance has already pushed the price of a non-subsidised 14.2 kg cylinder to approximately ₹913 in Delhi. To manage the crisis on the ground, a three-member committee of Executive Directors from state-owned Oil Marketing Companies (OMCs) has been formed to review commercial gas requirements, specifically for hospitals and educational institutions.
The Logical Indian’s Perspective
At The Logical Indian, we believe that while global conflicts are often beyond a nation’s direct control, the burden of geopolitical volatility should not fall squarely on the shoulders of the common citizen. While we appreciate the government’s proactive measures to safeguard domestic kitchens, the sudden curtailment of commercial supplies threatens the livelihoods of thousands of small business owners and workers in the hospitality sector.
True energy security lies not just in maintaining stocks, but in ensuring affordability and transparent communication to prevent panic. As a society, we must advocate for a transition toward energy self-reliance and sustainable alternatives to shield our daily lives from distant wars. Do you think the government should provide additional subsidies or tax relief to help citizens and small businesses tide over this fuel crisis?
In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use.
— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) March 9, 2026
The ministry has prioritised domestic LPG supply to…
