West Asia tensions disrupt LPG supply in Bengaluru, Mumbai, Kolkata; Centre orders higher production for domestic use

NEW DELHI: The Ministry of Petroleum and Natural Gas has directed oil refineries to ramp up the production of Liquefied Petroleum Gas (LPG) and channel the additional output specifically for domestic consumption.

The move comes in response to recent geopolitical tensions that have disrupted the global fuel supply chain.The government has prioritised LPG supply for households to ensure energy security for citizens amid ongoing uncertainty in the global oil and energy markets triggered by the West Asia crisis."In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," the Ministry of Petroleum and Natural Gas announced on X.

To manage the current supply environment, the ministry introduced a 25-day inter-booking period for consumers to avoid hoarding and prevent black marketing. "The ministry has prioritised domestic LPG supply to households and introduced 25 day inter- booking period to avoid hoarding/black marketing," the Ministry said.Regarding the distribution of imported fuel, the government designated specific priorities for non-domestic sectors.

"Non domestic supplies from imported LPG is being prioritised to essential non domestic sectors such as Hospitals and Educational institutions," the Ministry stated, adding that "For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs have been constituted to review the representations for LPG supply to restaurants/hotels/other industries.

"

Refill delays stretch to 2–8 days as LPG supply disruption hits MumbaiA shortage of LPG cooking gas has erupted Mumbai as a ripple effect of the US-Israel attack on Iran.

Disruption in LPG supply has caused delays. Waiting time after booking a refill ranges from two to eight days.The supply of commercial cylinders used by hotels and restaurants has been completely halted, say dealers. Eateries could enter crisis mode."Moreover, a new notification from the Union ministry of petroleum stipulates that domestic consumers can only book a new refill 25 days after receiving one cylinder," said a suburban dealer."It is not like last week when you could book the next cylinder within a day or two.""At least the domestic 14.2 kg cylinder is still available. The supply of commercial LPG cylinders has been completely halted since Sunday. This will lead to a crisis for hotels and restaurants who purchase these large cylinders," he said.LPG dealers say hotels and other commercial establishments may be forced to buy domestic cylinders from the black market.

"This is illegal as well as dangerous," they said.Bengaluru eateries face LPG supply disruption, warn of shutdownAmid escalating geopolitical tensions in West Asia, hotels and self-service eateries across Bengaluru reported an unexpected shortage of commercial LPG cylinders, raising concerns about possible disruptions to the city’s food services.The Bangalore Hotels Association warned that many small and medium-scale eateries could be forced to temporarily shut operations if the situation continues.P C Rao, honorary president of the association, said: "Only about 10% of hotels and restaurants in Bengaluru received their LPG supply today. We have gas to keep our kitchens running only until Tuesday afternoon or evening."According to hoteliers, distributors said they had received “instructions” from the Union Ministry of Petroleum and Natural Gas to prioritise LPG supply for domestic consumers.However, establishments connected to piped gas networks have not been affected so far.

The association said around 10 to 15 per cent of hotels and restaurants in the city receive piped gas from GAIL (India) Limited, and their supply remains uninterrupted.West Asia conflict threatens food businesses in Kolkata The conflict in West Asia is threatening to disrupt operations at restaurants and bakeries in Kolkata. Businesses that rely on LPG rushed to find alternatives on Monday after the Union Ministry of Petroleum and Natural Gas suspended the distribution of non-domestic LPG cylinders.

Sources in the hospitality and food industries warned that disruptions are imminent if the supply of commercial LPG remains halted.In a communication sent to oil marketing companies supplying LPG, the ministry directed an immediate halt to the distribution of non-domestic non-exempted (NDNE) LPG cylinders until further notice. However, commercial LPG supply to hospitals will continue.Earlier on Monday, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri spoke about the broader energy situation and the impact of global conflicts on Indian markets.

Interacting with media professionals, the minister emphasised the resilience of India’s import channels and highlighted the government’s proactive approach to managing potential disruptions."In informal interaction with a large group of media professionals today, we had detailed discussion on the emerging geopolitical situation and challenges facing the energy markets. Uninterrupted energy imports are flowing into India from routes that are not impacted by the conflict and we are taking all necessary steps to ensure availability of energy to our citizens," Puri said on X. (With agency inputs)