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International gas shortage

India LPG Shortage Amid West Asia Conflict

Analysis based on 21 articles · First reported Mar 10, 2026 · Last updated Mar 11, 2026

Sentiment
-60
Attention
6
Articles
21
Market Impact
General
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The ongoing LPG shortage in India, triggered by the West Asia conflict and disruptions in the Strait of Hormuz, is negatively impacting the hospitality sector, leading to potential shutdowns and increased operational costs. The government's invocation of the Essential Commodities Act and prioritization of domestic supply may alleviate household concerns but exacerbates challenges for commercial users, potentially affecting consumer prices and economic stability.

hospitality energy transportation

India is facing a severe LPG gas shortage, primarily due to disruptions in global energy supplies stemming from the ongoing conflict in West Asia, particularly involving the United States, Israel, and Iran. The closure of the Strait of Hormuz, a crucial route for India's LPG imports, has exacerbated the crisis. This shortage has led to a price hike of Rs 60 for cooking LPG cylinders and the implementation of a 25-day inter-booking period for domestic refills to curb panic buying. The India — Ministry of Petroleum and Natural Gas has invoked the Essential Commodities Act, prioritizing domestic LPG supply to households, hospitals, and essential services, while restricting commercial distribution. This has significantly impacted the hospitality sector across major Indian cities, with restaurants and hotels reporting shortages and considering shutdowns. The India — Delhi High Court's lawyers' canteen, for instance, temporarily halted main course meals due to the unavailability of LPG cylinders. India — Tamil Nadu Chief Minister M. K. Stalin has urged Prime Minister Narendra Modi to ensure uninterrupted LPG supply and the safety of Tamils in West Asia. Despite assurances from the LPG Association that domestic supply is not short, the commercial sector faces acute challenges, prompting some eateries to adopt crisis menus or alternative cooking methods.

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The Chennai Hotels Association has appealed to Narendra Modi and Hardeep Singh Puri regarding the shortage of commercial LPG cylinders, highlighting the impact on the food industry and related sectors.
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R. K. Gupta, National Vice President of the LPG Association, stated that there is no shortage in the supply of domestic LPG, despite commercial shortages.
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