As India is facing a shortage of Liquefied Petroleum Gas (LPG) caused by the war in the Middle East, the country has procured 1 million tonnes from the United States. India has acquired 20 very large gas carrier (VLGC) cargoes, equivalent to 1 million tonnes, from the US. However, the national consumption each month requires 40 VLGC cargoes.
Amid the growing concerns regarding the supply of cooking fuel, the government on Tuesday (10th March) assured people that arrangements have been made to meet the domestic requirement and the production of LPG has been ramped up by 10%. Notably, over 330 million consumers in India use LPG.
As per reports, despite the government’s arrangements, people are facing delays in booking and delivery of LPG cylinders. Incidents of black-marketing of LPG cylinders are also emerging. The government had reportedly restricted the commercial supplies of LPG on 8th March, amid the LPG shortage caused by disruptions in shipping through the Strait of Hormuz, through which a large portion of India’s LPG imports pass. Later, on the supplies to essential sectors like hospitals and educational institutions.
Hoteliers across the country flagged an acute shortage of commercial LPG cylinders and expressed fears that if the present situation continued, they may face shutdowns. The National Restaurant Association of India (NRAI), Indian Hotel and Restaurant Association (AHAR), Bengaluru Hotels Association, Chennai Hotels Association, Chennai Tea Shops Association, the Hotel & Restaurant Association of Odisha (HRAO), and several hoteliers have warned that the non-availability of cooking gas would force many units to shut their shops. They requested the government to ensure a steady supply of commercial LPG.
“The restaurant industry is predominantly dependent on commercial LPG for its operations. Any disruption therein will lead to a catastrophic closure of the majority of restaurants,” the NRAI said in a statement.
As per the Petroleum Planning and Analysis Cell, the total cumulative LPG production in India during April 2025 to January 2026 stood at 10.642 million metric tonnes (MMT). The production in January 2026 alone was 1.158 MMT. The government is not planning to increase the domestic production of LPG to reduce dependence on imports.
India is one of the largest importers of oil and has, as its domestic production is very low. Most of India’s energy imports come from the Gulf region. India imports 80-85% of the LPG it consumes annually, making it the world’s second-largest LPG importer after China. Majority of in LPG is produced from crude oil, and Indian refiners have increased LPG production by 10%.
