- India faces LPG cylinder shortage impacting over 33 crore households and many eateries
- Commercial kitchens in major cities resort to wood fires due to LPG supply disruptions
- Hotel associations urge government to resume LPG supply, citing essential service status
The headlines have been about India's oil reserves but the crunch over volatility in Middle East energy supply – as a result of the US-Israel war on Iran – is also being felt by a hospitality sector starved of LPG cylinders to fire up its stoves. Liquified petroleum gas is used by over 33 crore households, including lakhs of eateries, and it has suddenly become hard to get.
As a result, commercial kitchens in Chennai, Bengaluru, Kolkata, and other cities have switched to wood fires – in most cases using scrap lumber as fuel – to ensure at least some food is available. In some cases the situation is so dire that restaurant has stopped serving some items or swapped out those that require more gas to cook in favour of fast food dishes.
In Karnataka, for example, the popular Bangalore Thindies – located opposite the ruling Congress' state unit office – is now serving only coffee and tea. Pre-crisis it had a 11-item menu that included dosa, idli, vada, and rice dishes.
The cafe owner told NDTV LPG cylinders were available on the black market but at exorbitant prices.
On Tuesday hotel owners' associations in Chennai and Bengaluru flagged this issue, pointed out theirs is an 'essential service' and urging the federal government to "resume gas supply".
RECAP | Bengaluru, Chennai, Mumbai Hotels Flag LPG Cylinder Shortage, Centre Responds
"The industry works on a 24x7 basis in many cases…" a Chennai association's President, M Ravi, said in an appeal to Chief MInister MK Stalin and Prime Minister Narendra Modi, "(we serve) hospitals… besides IT Parks, students, and catering for trains, will be affected without supply of commercial LPG."
The situation is as concerning in Mumbai and Kolkata.
An estimated 20 per cent of Mumbai eateries have suspended operations and the story is the same in Kolkata. The owner of Aminia, a heritage Mughlai cuisine restaurant in New Market, told NDTV, "We have three days' stock (of cylinders) in our restaurant. Commercial LPG cylinders are not available in the market. We also use coal and are considering a full switch."
In Gujarat's Surat, the LPG cylinder shortage has meant hotel owners are being forced to pay as much as Rs 2,200 for a cylinder for commerical purposes. Prices were hiked last week; a 14.2 kg cylinder for housesholds is now Rs 60 more and a 19-kg commercial cylinder now costs Rs 1,883 in Delhi, Rs 1,835 in Mumbai, Rs 1,990 in Kolkata, and Rs 2,043 in Chennai.
The government has increased the waiting period from 21 days to 25, to prevent hoarding and black marketing.
India consumes approximately 31.3 million tonnes of LPG annually (File)
Imported cylinders, meanwhile, are being reserved for critical facilities like hospitals.
On Tuesday Prime Minister Modi was briefed by Petroleum Minister Hardeep Singh Puri – who last week said India is in a "comfortable position". He said he had ordered oil refineries to increase production of LPG cylinders for domestic use.
The crisis stems from the closure of the Strait of Hormuz amid the US-Israel-Iran war. A narrow maritime passage over which Tehran exerts geographical control, it is vital for India's energy security since it imports 62 per cent of its LPG needs.
And those needs are set to increase with domestic consumption showing a steady upward trajectory over the past decade, rising from 21.61 million tonnes in 2016-17 to a peak of 31.32 million in FY25, before easing to 30.86 million tonnes in FY26.
NDTV Explains | Why The War In Middle East Is Triggering LPG Prices In India
An estimated 90 per cent of this come from Middle East suppliers like Qatar, the UAE, Saudi Arabia, and Kuwait, but access, traditionally via the Hormuz Strait, has now been compromised
