Gulf tensions trigger LPG supply concerns in Andhra Pradesh

Amid the ongoing conflict in the Gulf region following the U.S. and Israeli strikes on Iran, concerns are growing in Andhra Pradesh over the availability of LPG cylinders.

According to official sources, the State currently has about 1.6 crore to 1.7 crore domestic LPG connections, including roughly 5 lakh under the PM Ujjwala Yojana and nearly 1 crore under the State government’s Deepam II scheme. The connections are almost evenly distributed among the major downstream oil marketing companies. Hindustan Petroleum Corporation Ltd., Bharat Petroleum Corporation Ltd., and Indian Oil Corporation Ltd. each account for about 30% to 34% of the market share.

Officials from Hindustan Petroleum Corporation Ltd. in Visakhapatnam have dismissed rumours of an immediate shortage, stating that sufficient LPG stock is available for the next 25 to 30 days. They have advised consumers not to resort to panic bookings and assured that domestic users will be prioritised as per directions from the Union Ministry.

There is no need to panic. Our primary focus is on domestic consumers and we have received clear instructions from the authorities not to cause hardship to households, said a senior manager from an LPG distribution unit of HPCL in Visakhapatnam.

However, commercial users such as hotels and restaurants report restrictions on refills, with distributors advising them to utilise their existing stocks first. Hoteliers say this could disrupt operations if supplies do not resume soon.

Members of the Andhra Pradesh Star Hotels Association led by its president R. V. Swamy met Director of Civil Supplies Nupur Ajay Kumar on Tuesday and expressed concern over the recent order issued by the Ministry of Petroleum and Natural Gas on March 5, 2026, prioritising propane and butane streams for the production of domestic LPG cylinders.

Mr. Swamy said that while the association appreciates the government’s efforts to ensure uninterrupted LPG supply to households, the decision may affect the availability of commercial LPG cylinders, which are essential for the hospitality sector. Star hotels, resorts, restaurants and catering establishments depend heavily on commercial LPG for daily operations, particularly for food preparation and guest services.

The hospitality sector also plays a key role in supporting tourism in major Andhra Pradesh destinations such as Visakhapatnam, Vijayawada and Tirupati, where uninterrupted hospitality services are crucial for both domestic and international visitors, he said.

Hoteliers said some establishments had already received indications from LPG distributors about possible supply constraints following the new order. Any prolonged disruption in commercial LPG supply could affect hotel kitchens, restaurants, catering services, banquets, conferences and other tourism related activities. They added that this could also indirectly impact employment and the local economy that depends on the hospitality industry.

The association members requested the Civil Supplies Department to coordinate with LPG distributors and relevant authorities in the State to ensure adequate and uninterrupted supply of commercial LPG cylinders for hotels and hospitality establishments in Andhra Pradesh.

Though officials and the government are trying to quell public fears, the ground situation appears less certain. Visakhapatnam hosts a major LPG cavern storage facility of HPCL with a capacity of about 60,000 metric tonnes. Reports indicate that while one LPG vessel from Qatar has already arrived and is unloading cargo, another shipment has been delayed due to disruptions near the Strait of Hormuz, adding to the growing uncertainty over future supplies.