NEW DELHI/MUMBAI/BENGALURU: A severe crunch in liquefied natural gas (LNG) and commercial LPG supplies as disruptions linked to the ongoing conflict in West Asia begin to affect fuel availability across the country.Invoking the Essential Commodities Act, 1955, the Union government on Monday reallocated gas supplies, cutting allocations to fertiliser and other industries while prioritising domestic piped natural gas (PNG) for households, compressed natural gas (CNG) for transport and LPG production.
The decision came days after the petroleum ministry said supplies were comfortable and that additional LNG flows were being explored from countries such as Canada and Australia, even as outages in Qatar, India’s top LNG supplier, tightened global availability.
Hours after the notification, Prime Minister Narendra Modi held a meeting with petroleum minister Hardeep Singh Puri and external affairs minister Subrahmanyam Jaishankar to assess the geopolitical situation and its possible impact on energy flows.
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During a cabinet meeting earlier in the day, the prime minister asked ministers to review the situation in their respective sectors and coordinate with stakeholders to ensure the public does not face disruption due to the conflict.
Gujarat
The Gujarat government said gas supply to industries has been cut by 50%, while fertiliser and milk processing units will face a 40% reduction.The decision was taken in coordination with the Union government to ensure uninterrupted supply for domestic users. Authorities also said they are working to prevent panic and maintain a steady availability of LPG cylinders for households.
Bengaluru
The LPG shortage has begun to affect restaurants in Bengaluru, with several eateries reporting they have not received commercial cylinders for two consecutive days.Many restaurants and darshinis have started trimming menus to conserve fuel, temporarily dropping gas-intensive items such as pooris and vadas that require prolonged heating of oil. Kitchens are prioritising dishes that consume less gas, including idli, dosa and regular meals.
Some establishments have switched off part of their cooking burners to ration remaining stock. In parts of east Bengaluru, restaurants said supply had dried up completely and some operators were being asked to pay nearly double the usual price for cylinders.Commercial LPG prices have also risen sharply, with the price of a 19-kg cylinder reaching around Rs 1,900 after multiple revisions in March.
Chennai
In Chennai, several small eateries have temporarily shut operations as deliveries of commercial cylinders were delayed.Restaurants said they were running low on fuel and struggling to obtain replacements. Many dishes popular at such eateries require slow cooking, which increases gas consumption, making it difficult for businesses to continue normal operations.Establishments that rely on piped gas have largely been unaffected so far.The president of the Chennai Hotels Association also contacted PM Modi on Monday seeking government intervention to restore an uninterrupted supply of cylinders. Industry representatives also reached out to Tamil Nadu chief minister MK Stalin on Tuesday.Association representatives said the city has more than 10,000 hotels that operate round the clock and depend on a steady supply of gas cylinders to keep their kitchens running without disruption.
Mumbai
The shortage has also hit the hospitality sector in Mumbai, where several restaurants have scaled back operations.Industry bodies say around 20% of hotels and eateries in the region are already fully or partially shut due to a lack of cooking gas. They warn that up to 50–60% of establishments could close temporarily if the supply situation does not improve soon.Chinese dishes and tawa-based recipes, which require high flames, are among the first menu items being removed.
Pune
In Pune, nearly 100 eateries out of about 1,200 establishments have been affected by the curbs on commercial LPG distribution.Several restaurants are operating at reduced capacity, cutting menu items or shutting kitchens altogether after cylinder supplies were suspended since Monday. Industry sources say the shortage has also triggered black-marketing of commercial cylinders.
Madhya Pradesh
Hotels across Madhya Pradesh have begun exploring electric cooking systems and revising menus as restricted LPG supplies disrupt kitchen operations.An urgent online meeting of hoteliers from cities including Bhopal, Indore, Gwalior and Jabalpur discussed contingency measures as many establishments reported having fuel stocks that may last only about five days.Hotels have also started limiting live cooking counters and other high-consumption cooking stations to conserve fuel.
Telangana
Restaurants in Telangana, particularly in Hyderabad, are also bracing for disruption as dealers limit the number of cylinders they supply.Industry bodies warned that more than 60% of eateries in the state could be forced to shut operations within a couple of days if deliveries of commercial cylinders remain delayed.The shortage comes at a time when eateries are seeing heavy late-night crowds and increased demand due to special iftar menus.
Kerala
Restaurant associations in Kerala say distribution agencies have started halting deliveries of commercial cylinders, leaving thousands of establishments facing possible closure.Hotels and restaurants are considering measures such as limiting menu items, relying on reheating food and shifting to electric cooking systems. However, operators say kitchens are not designed for such sudden changes and regulatory approvals may also be required.The impact is already being felt strongly in urban centres such as Kochi and Thiruvananthapuram, where stocks are rapidly depleting.
Kolkata
In Kolkata, fears of shortage have triggered panic buying of LPG cylinders, creating opportunities for black-market operators.Bookings for cylinders from Indian Oil Corporation rose sharply from about 2.5 lakh within 48 hours on March 5 to 5.8 lakh by March 9. When combined with supplies from Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, total bookings increased from 3.9 lakh to more than 7.5 lakh during the same period.The surge far exceeds the state’s normal demand of around five lakh cylinders per day.Authorities say the situation has encouraged illegal diversion of cylinders, including those meant for beneficiaries of the Pradhan Mantri Ujjwala Yojana, which are being sold at steep premiums in the black market.The shortage has also affected transport. Auto-LPG scarcity has led to long queues at fuel pumps and reduced the number of auto-rickshaws on several routes by nearly 30%, according to operators.Meanwhile, some roadside eateries in the city have switched from LPG ovens to coal-fired stoves to keep kitchens running, leading to a sudden spike in demand for coal.
Lucknow
Eateries in Lucknow have also begun feeling the effects of the supply curbs, with several small restaurants and roadside food stalls considering temporary closures.Hotels connected to the piped natural gas network are expected to manage operations for around 10 days, but establishments dependent entirely on LPG say even short disruptions are severely affecting their kitchens.
