LPG Shortage Fears Spread Across India as West Asia Conflict Disrupts Supply Chains
Fears of an LPG shortage are rapidly spreading across India, fueled by the escalating conflict in West Asia that is severely disrupting global energy supply chains. The closure of the Strait of Hormuz, following Iranian retaliation against US–Israel strikes, has triggered widespread panic buying, resulting in long queues at LPG agencies and petrol pumps. This crisis has forced numerous restaurants and small businesses to urgently switch to alternative cooking methods to sustain their operations.
Panic Buying and Long Queues Reported Nationwide
Scenes of chaos have emerged from multiple states as consumers rush to secure cooking gas and fuel. In Kolkata and various districts of West Bengal, auto-rickshaw drivers and domestic consumers were seen waiting for hours at LPG dispensing stations and gas agencies. Some drivers reported queuing since the previous night to refill their cylinders. Many consumers bypassed crashed online booking systems by visiting distributor offices directly.
Bijan Biswas, spokesperson for the Indane LPG Distributors' Association in Bengal, told PTI, "This is panic buying. Many people are afraid they might not get another cylinder soon, and that has led to this crisis." Distributors noted that daily bookings for Indane LPG cylinders in the state have nearly doubled to around two lakh from about one lakh earlier.
Restaurants Forced to Adapt with Alternative Methods
The reported shortage of commercial LPG cylinders is severely impacting the hospitality sector. In Bhopal, hotels and restaurants are turning to induction stoves and traditional firewood to continue operations. A major fast-food chain in the city has shifted to induction-based cooking, while some establishments have temporarily shut down due to fuel unavailability.
Restaurant owner Dolraj Gaire in Bhopal stated, "We are not alone facing the problem about the shortage of commercial cylinders, but the entire nation. We are trying to make it work through induction cooking." He added that they have shifted 60% of their work to induction, aiming to resolve the remaining 10-20% soon.
In Hyderabad, restaurant owner Nadeem Quadri reported that many eateries were forced to switch to firewood. "Today, due to the shortage of gas, we are cooking on wood. Almost all hotels in Telangana have already closed down because of the gas shortage," he told ANI, highlighting issues with black market gas and rising wood prices.
Hospitality and Transport Sectors Hit Hard
The crisis has particularly affected Tamil Nadu, where the Tamil Nadu Hotels Association noted that thousands of small and medium-sized restaurants are struggling due to disrupted commercial LPG supplies. In Chennai, many eateries have stopped serving fuel-intensive dishes like dosa and fried rice to conserve gas, with some displaying boards announcing temporary closures.
The transport sector is also suffering, especially gas-run auto-rickshaws. Nearly a quarter of Chennai’s auto fleet remained off the roads as drivers spent hours waiting at limited LPG dispensing stations. Those still operating have reportedly raised fares to offset long refueling times.
Panic Buying Extends to Fuel Stations
Rumours of shortages have triggered panic buying at petrol pumps in regions like Puducherry, where two-wheeler riders and car owners queued up despite government assurances of normal petrol and diesel supplies. A petrol dealer urged vehicle owners not to fall prey to baseless rumours, emphasizing sufficient stock availability.
Surge in Demand for Electric Cooking Appliances
As concerns over LPG supply disruptions grow, sales of electric cooking appliances have surged. In New Delhi, demand for induction cooktops has jumped significantly. Shibashish Roy, CEO & MD of Infiniti Retail Ltd (Croma), reported that their average daily run rate has surged to nearly three times the usual levels, with customers purchasing multiple units as a precaution.
Online marketplaces are witnessing even sharper increases. An Amazon India spokesperson said sales of induction cooktops increased 30X over the last two days, with rice cookers and electric pressure cookers seeing a 4X rise. Customers in Delhi-NCR, Mumbai, and Bengaluru are using fast delivery services to obtain these products quickly.
Potential Impact on Power Generation
The fuel shortage may extend to the power sector, particularly in Karnataka. The Centre has prioritized natural gas allocation to critical sectors, placing power generation at the lowest priority. Gas Authority of India Limited has stopped gas supply to the Yelahanka gas-based power plant, a 370 MW facility that primarily supplies electricity to Bengaluru. Officials warn that continued disruption could lead to minor power supply issues if alternative sources are not scaled up.
Government Interventions and Political Reactions
The Union government has invoked the Essential Commodities Act to prioritize LPG supply for households and essential services like hospitals and educational institutions. Domestic LPG production has been increased by around 25%, with entire output directed towards household consumption. States have been instructed to monitor supply chains and crack down on hoarding and black marketing.
In Bihar, efforts are underway to ensure adequate LPG supply and check black marketing. Meanwhile, political leaders have voiced concerns. Congress leader Rahul Gandhi criticized the Centre’s preparedness, warning of risks to India’s energy security. Tamil Nadu Chief Minister M K Stalin and West Bengal Chief Minister Mamata Banerjee have also sought urgent interventions to stabilize fuel supplies.
Root Causes of the Crisis
India consumes about 31.3 million tonnes of LPG annually, with nearly 87% used by households and the rest by commercial establishments. Approximately 62% of the country’s LPG demand is met through imports, primarily from West Asian countries like Saudi Arabia and Qatar via the Strait of Hormuz. The ongoing conflict has disrupted this key shipping route, putting global energy supplies under pressure and fueling fears of a wider energy crunch across India.
