Commercial LPG cylinder supplies halted in 8 states:MP, Rajasthan and others affected; hotels, restaurants willing to pay higher prices

A major crisis has arisen regarding the supply of cooking gas (LPG) in India. Due to this, the supply of commercial gas has been temporarily stopped in Madhya Pradesh, Uttarakhand, Maharashtra, Punjab, Rajasthan, Chhattisgarh, Haryana, Karnataka, Telangana, and Andhra Pradesh. Due to this halt, a gas shortage has started in the domestic market. Restaurants and hotels are on the verge of closure. Small hotel and eatery owners have urged the government to restore supply, as the livelihoods of millions of people depend on it. Most of the LPG consignments coming to India arrive via the ‘Strait of Hormuz’. This route has been blocked due to the war that started between America, Israel, and Iran on February 28. For this reason, the supply to India and the rest of the world through this route has been disrupted. Control Order Issued for Gas Supply After the gas supply through the Strait of Hormuz was affected, the central government implemented the ‘Essential Commodities Act, 1955’. This has been done to control the supply of natural gas in the country. Gas to be Divided into Four Categories Supply is most affected in these states Government Forms High-Level Committee In view of the crisis, the Ministry of Petroleum has formed a high-level committee of executive directors from three oil companies (OMCs) to review the supply. Domestic Gas Cylinder Booking 25 Days After Delivery Earlier yesterday, i.e., March 9, the central government had changed the rules for refilling domestic LPG cylinders. Now, consumers will be able to book a second cylinder only after 25 days instead of 21 days after one cylinder is delivered. OTP and Biometric Mandatory to Prevent Hoarding To prevent gas hoarding, delivery agents are now using OTP or biometric verification. Oil marketing companies have been instructed to use propane and butane more for domestic cylinders instead of commercial ones. Emergency provisions have been implemented under the Essential Commodities Act. When will the situation improve? K.M. Thakur, Chief General Manager (LPG) of Indian Oil, says that customers do not need to panic and should not make panic bookings. The government is now considering importing alternative cargo from countries like America. Meanwhile, at the international level, G7 countries are discussing releasing supplies from their emergency oil reserves to mitigate the energy crisis in the global market. Additional crude oil is also expected from Russia and Algeria. To increase LPG production to prevent cylinder shortage The government had ordered all oil refinery companies to increase LPG production. Gas supply has been affected by increasing tensions in the Middle East. Considering this threat, the government issued this order. It states that refineries will now use propane and butane only for making cooking gas. All companies will have to supply propane and butane to government oil companies. Government oil companies include Indian Oil (IOC), Hindustan Petroleum (HPCL), and Bharat Petroleum (BPCL). The aim is to ensure an uninterrupted supply of gas cylinders to consumers. 2 Reasons for Supply Crisis 1. Near closure of the Strait of Hormuz The biggest challenge for India is the closure of the ‘Strait of Hormuz’. This is an approximately 167 km long waterway that connects the Persian Gulf to the Arabian Sea. Due to the Iran war, this route is no longer safe. Considering the danger, no oil tanker passes through there. 20% of the world’s total petroleum passes through here. Countries like Saudi Arabia, Iraq, and Kuwait also depend on it for their exports. India imports 50% of its crude oil and 54% of its LNG through this route. Iran itself exports through this route. 2. LNG Production Halted Due to Drone Attack on Plant Last week, the US and Israel struck Iran. In response, Iran targeted US bases and ports in countries like the UAE, Qatar, Kuwait, and Saudi. After Iran’s drone attack, Qatar, the largest country supplying gas to India, has stopped production at its LNG plant. This has reduced the gas supply in India. India imports 40% of its LNG needs (about 27 million tons annually) from Qatar. 3 Days Ago, the Government Increased Domestic Gas Cylinder Prices by ₹60 3 days ago, the government made domestic gas cylinders ₹60 more expensive. In Delhi, a 14.2 kg LPG gas cylinder is now available for ₹913. Earlier, it was ₹853. Meanwhile, the 19 kg commercial cylinder has seen an increase of ₹115. It is now available for ₹1883. The increased prices came into effect from March 7. Before this, the government had increased the prices of domestic cylinders by ₹50 on April 8, 2025. This means the increase has been made after about a year. Meanwhile, on March 1, 2026, the prices of commercial gas cylinders were increased by up to ₹31. The government has increased gas prices at a time when there is apprehension of a gas shortage in the country due to the US-Israel and Iran war.