910
7 days ago
LPG Shortage Live Updates: Govt sets up panel as LPG crisis hits hotels, restaurants in Mumbai, Beng
Summary
LPG Shortage News Today LIVE: The hospitality and restaurants sector in India is grappling with a growing shortage of commercial liquid petroleum gas (LPG) supply as the government has taken steps to temporarily limit cooking gas cylinders to high priority sectors such as education and hospitals.
Restaurants in major cities such as Bengaluru, Delhi, Hyderabad and Mumbai are warning that operations could be disrupted if supplies do not stabilise soon. Industry groups say eateries depend on frequent LPG deliveries and typically do not maintain large reserves, forcing some establishments to cut menus, reduce operating hours or consider temporary closures.
Further, with LPG supplies now temporarily restricted, food delivery platforms such as Swiggy and Zomato may also see some impact as restaurants recalibrate services after taking stock of their existing supplies, according to a Moneycontrol report.
India consumes about 31.3 million tonnes of LPG annually, with around 62% imported. Much of these imports normally move through the Strait of Hormuz, where disruptions linked to the conflict in West Asia have tightened supplies.
Iran has restricted use of the strategic waterway amid attacks from the United States-Israel. The chokepoint handles about 20 mbpd of oil — around one-fifth of global consumption — and around one-fifth of global LNG trade, mainly from Qatar.
Meanwhile, Gulf oil producers have started cutting output amid disrupted shipping in the region. Over the weekend, Iraq reduced production at its main southern oilfields by 70% to 1.3 million barrels per day, while Kuwait Petroleum Corporation also began lowering output and declared force majeure.
Asian countries are especially feeling the hit as reserve become tight. Officials say India is exploring additional LPG supply partnerships with Algeria, Australia, Canada and Norway to ease the pressure on domestic markets.
Catch LIVE Updates with Mint
According to the order, the supply of natural gas to the certain sectors shall be treated as priority allocation and shall be maintained subject to operational availability to 100% of their average past six-month average gas consumption.
These sectors include:
The Centre today invoked the Essential Commodities Act (EC Act ) to ensure uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.
The official added that electric crematoriums and wood-fired facilities equipped with air pollution control systems will continue to function.
At the city's Vaikunth crematorium — its three gas-fired furnaces will remain shut, and five electric furnaces will remain operational.
The Pune Municipal Corporation (PMC) has temporarily shut the city's gas crematoriums due to restrictions on use of Liquefied Petroleum Gas (LPG) components such as propane and butane amid the ongoing West Asia conflict, PTI reported.
In an order dated 5 March, the civic body has directed that all available butane and propane be prioritised for domestic use and has shut gas crematoriums till further notice, the agency quoted an official saying.
The Chennai Hotels Association, meanwhile, wrote to Prime Minister Narendra Modi, calling for his attention to the matter and requesting urgent supply of LPG cylinders.
“We request you to please represent our case on an urgent basis, as the food industry works on a 24 x 7 basis for many hospitals who require the food to be supplied on time besides IT Parks, students at college hostels, train and business travellers will all be affected, if the supply of commercial LPG is hindered,” the association said.
OMCs raised the price of 14.2 kg non-subsidised LPG cylinder by ₹60 across major cities in India, with effect from 7 March.
Data on the Indian Oil Corporation (IOC) website showed that the cylinder now costs ₹913 each in the national capital city of Delhi.
Further, price of the non-subsidised household LPG cylinder in Mumbai, Kolkata and Chennai now stand at ₹912.50, ₹939 and ₹928.50 respectively, the IOC website showed.
The Bangalore Hotels Association on Monday said the hotel and restaurant operations across the city are likely to be affected starting March 10.
“Since the gas supply has stopped, the hotels will be closed from tomorrow. Since the hotel industry is an essential service, common people, students, and medical professionals, who rely on the hotels for daily meals, will be affected,” the association said in a statement.
The price of domestic cooking gas LPG was hiked by ₹60 per cylinder as oil companies factored in increased energy prices in view of the West Asia conflict.
More than 50% of hotels in Mumbai are at risk of downing their shutters due to acute gas supply issues, according to the Indian Hotel & Restaurant Association (AHAR).
Speaking to India Today, the body said that some 20% hotels in the financial capital have already closed and if supply issues continue, this could increase to at least 50% over the next two days.
Ongoing conflict in West Asia has plunged India's aviation sector into crisis, leading to over 1,100 flight cancellations and rising operational costs. The combination of the sliding rupee, rising crude and diminishing air routes is putting pressure on the sector like never before, with estimated losses reaching ₹170–180 billion.
The extended war between the US, Israel and Iran has blocked shipping through the crucial Strait of Hormuz route. The chokepoint handles about 20 mbpd of oil — around one-fifth of global consumption — and around one-fifth of global LNG trade, mainly from Qatar.
The stoppage has pushed crude prices up over 25% to over $119/barrel, after a 28% rally last week.
Meanwhile, Gulf oil producers have started cutting output amid disrupted shipping in the region.
BJP MP from Bengaluru South, Tejasvi Surya has written to Union Petroleum Minister Hardeep Singh Puri, requesting that LNG supply continues to the restaurant and hospitality sector.
With LPG supplies now temporarily restricted to educational institutions and hospitals, food delivery platforms such as Swiggy and Zomato may also see some impact as restaurants recalibrate services after taking stock of their cooking gas supplies, Moneycontrol reported citing industry voices.
To discourage hoarding and black-marketing, the government has extended the minimum booking interval for LPG cylinders from 21 days to 25 days.
Officials said unusual booking patterns had recently emerged. In several cases, consumers who previously ordered cylinders roughly every 55 days began placing bookings within 15 days, raising concerns that some buyers might be stockpiling LPG.
By lengthening the booking cycle, authorities hope to regulate demand and ensure fair distribution across households.
To address the supply imbalance, the government has instructed refineries to boost LPG output wherever possible. Increasing domestic production is seen as a key step in reducing pressure on imports and stabilising the availability of cylinders.
Officials are also monitoring supply chains to ensure distribution networks function efficiently during periods of heightened demand.
Government sources emphasised that domestic consumers will remain the top priority in LPG distribution.
Oil marketing companies have been directed to prioritise household LPG connections over commercial supply, a move aimed at protecting access to cooking fuel for families across the country.
This policy shift may temporarily tighten supplies for commercial users such as hotels and restaurants, which rely on market-priced LPG cylinders
Good morning and welcome to Mint's LIVE coverage of the LPG supply news amid the United States-Israel-Iran war in West Asia. With the strategic Strait of Hormuz shut due to the conflict, oil supply, especially to Asian countries has become tight with reserves reaching concerning numbers.
Stay with Livemint for the latest news, updates and developments on LPG prices, LPG supply and other related news in India and from around the world.
Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<b...Read More
Stay updated with the latest Trending, India , World and US news.
Download the Mint app and read premium stories
Restaurants in major cities such as Bengaluru, Delhi, Hyderabad and Mumbai are warning that operations could be disrupted if supplies do not stabilise soon. Industry groups say eateries depend on frequent LPG deliveries and typically do not maintain large reserves, forcing some establishments to cut menus, reduce operating hours or consider temporary closures.
Further, with LPG supplies now temporarily restricted, food delivery platforms such as Swiggy and Zomato may also see some impact as restaurants recalibrate services after taking stock of their existing supplies, according to a Moneycontrol report.
India consumes about 31.3 million tonnes of LPG annually, with around 62% imported. Much of these imports normally move through the Strait of Hormuz, where disruptions linked to the conflict in West Asia have tightened supplies.
Iran has restricted use of the strategic waterway amid attacks from the United States-Israel. The chokepoint handles about 20 mbpd of oil — around one-fifth of global consumption — and around one-fifth of global LNG trade, mainly from Qatar.
Meanwhile, Gulf oil producers have started cutting output amid disrupted shipping in the region. Over the weekend, Iraq reduced production at its main southern oilfields by 70% to 1.3 million barrels per day, while Kuwait Petroleum Corporation also began lowering output and declared force majeure.
Asian countries are especially feeling the hit as reserve become tight. Officials say India is exploring additional LPG supply partnerships with Algeria, Australia, Canada and Norway to ease the pressure on domestic markets.
Catch LIVE Updates with Mint
According to the order, the supply of natural gas to the certain sectors shall be treated as priority allocation and shall be maintained subject to operational availability to 100% of their average past six-month average gas consumption.
These sectors include:
The Centre today invoked the Essential Commodities Act (EC Act ) to ensure uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.
The official added that electric crematoriums and wood-fired facilities equipped with air pollution control systems will continue to function.
At the city's Vaikunth crematorium — its three gas-fired furnaces will remain shut, and five electric furnaces will remain operational.
The Pune Municipal Corporation (PMC) has temporarily shut the city's gas crematoriums due to restrictions on use of Liquefied Petroleum Gas (LPG) components such as propane and butane amid the ongoing West Asia conflict, PTI reported.
In an order dated 5 March, the civic body has directed that all available butane and propane be prioritised for domestic use and has shut gas crematoriums till further notice, the agency quoted an official saying.
The Chennai Hotels Association, meanwhile, wrote to Prime Minister Narendra Modi, calling for his attention to the matter and requesting urgent supply of LPG cylinders.
“We request you to please represent our case on an urgent basis, as the food industry works on a 24 x 7 basis for many hospitals who require the food to be supplied on time besides IT Parks, students at college hostels, train and business travellers will all be affected, if the supply of commercial LPG is hindered,” the association said.
OMCs raised the price of 14.2 kg non-subsidised LPG cylinder by ₹60 across major cities in India, with effect from 7 March.
Data on the Indian Oil Corporation (IOC) website showed that the cylinder now costs ₹913 each in the national capital city of Delhi.
Further, price of the non-subsidised household LPG cylinder in Mumbai, Kolkata and Chennai now stand at ₹912.50, ₹939 and ₹928.50 respectively, the IOC website showed.
The Bangalore Hotels Association on Monday said the hotel and restaurant operations across the city are likely to be affected starting March 10.
“Since the gas supply has stopped, the hotels will be closed from tomorrow. Since the hotel industry is an essential service, common people, students, and medical professionals, who rely on the hotels for daily meals, will be affected,” the association said in a statement.
The price of domestic cooking gas LPG was hiked by ₹60 per cylinder as oil companies factored in increased energy prices in view of the West Asia conflict.
More than 50% of hotels in Mumbai are at risk of downing their shutters due to acute gas supply issues, according to the Indian Hotel & Restaurant Association (AHAR).
Speaking to India Today, the body said that some 20% hotels in the financial capital have already closed and if supply issues continue, this could increase to at least 50% over the next two days.
Ongoing conflict in West Asia has plunged India's aviation sector into crisis, leading to over 1,100 flight cancellations and rising operational costs. The combination of the sliding rupee, rising crude and diminishing air routes is putting pressure on the sector like never before, with estimated losses reaching ₹170–180 billion.
The extended war between the US, Israel and Iran has blocked shipping through the crucial Strait of Hormuz route. The chokepoint handles about 20 mbpd of oil — around one-fifth of global consumption — and around one-fifth of global LNG trade, mainly from Qatar.
The stoppage has pushed crude prices up over 25% to over $119/barrel, after a 28% rally last week.
Meanwhile, Gulf oil producers have started cutting output amid disrupted shipping in the region.
BJP MP from Bengaluru South, Tejasvi Surya has written to Union Petroleum Minister Hardeep Singh Puri, requesting that LNG supply continues to the restaurant and hospitality sector.
With LPG supplies now temporarily restricted to educational institutions and hospitals, food delivery platforms such as Swiggy and Zomato may also see some impact as restaurants recalibrate services after taking stock of their cooking gas supplies, Moneycontrol reported citing industry voices.
To discourage hoarding and black-marketing, the government has extended the minimum booking interval for LPG cylinders from 21 days to 25 days.
Officials said unusual booking patterns had recently emerged. In several cases, consumers who previously ordered cylinders roughly every 55 days began placing bookings within 15 days, raising concerns that some buyers might be stockpiling LPG.
By lengthening the booking cycle, authorities hope to regulate demand and ensure fair distribution across households.
To address the supply imbalance, the government has instructed refineries to boost LPG output wherever possible. Increasing domestic production is seen as a key step in reducing pressure on imports and stabilising the availability of cylinders.
Officials are also monitoring supply chains to ensure distribution networks function efficiently during periods of heightened demand.
Government sources emphasised that domestic consumers will remain the top priority in LPG distribution.
Oil marketing companies have been directed to prioritise household LPG connections over commercial supply, a move aimed at protecting access to cooking fuel for families across the country.
This policy shift may temporarily tighten supplies for commercial users such as hotels and restaurants, which rely on market-priced LPG cylinders
Good morning and welcome to Mint's LIVE coverage of the LPG supply news amid the United States-Israel-Iran war in West Asia. With the strategic Strait of Hormuz shut due to the conflict, oil supply, especially to Asian countries has become tight with reserves reaching concerning numbers.
Stay with Livemint for the latest news, updates and developments on LPG prices, LPG supply and other related news in India and from around the world.
Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<b...Read More
Stay updated with the latest Trending, India , World and US news.
Download the Mint app and read premium stories
AI Description
The article discusses the Indian government's response to an LPG shortage affecting the hospitality sector. It highlights the establishment of a panel to address the crisis and the prioritization of LPG supply to essential sectors.