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LPG crunch persists; supplies curbed for commercial users

LPG shortages entered a third week as the Centre prioritised households, curbing supplies to commercial users amid disruptions caused by the West Asia conflict and Strait of Hormuz shutdown.

News Arena Network - New Delhi - UPDATED: March 20, 2026, 04:52 PM - 2 min read

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A man sits over an LPG cylinder amid rainfall, during an ongoing supply crisis, in Prayagraj, on Friday.


The ongoing LPG supply crunch entered its third week on Friday, with the Centre continuing to prioritise domestic consumers while maintaining restrictions on commercial usage amid disruptions linked to the West Asia conflict.

Officials said there were early signs of easing pressure, with panic booking of refills declining after peaking earlier this month. However, supply constraints remain due to disruptions in imports following the closure of the Strait of Hormuz, a critical route through which India sources nearly 60 per cent of its LPG imports.

At a briefing, Sujata Sharma said bookings had dropped to around 55 lakh on March 19 from 57 lakh a day earlier, closer to the pre-crisis daily average of 50–55 lakh.

“Panic booking is coming down,” she said, adding that the government continues to prioritise household kitchens. “LPG situation remains worrisome, but there is no dry out at any LPG distributor.”

The supply squeeze follows the escalation in the Middle East, where US and Israeli actions against Iran disrupted shipping routes, prompting authorities to divert available supplies towards domestic consumption.

Supplies to commercial users, including hotels and restaurants, were initially halted and later restored to about one-fifth of their requirement. In the past week, around 11,300 tonnes of LPG were allocated to commercial establishments.

Also read: Indian vessel ‘Jag Laadki’ reaches Mundra Port

 

The disruption triggered panic buying among households earlier, amid fears of rationing. Authorities have since stepped up efforts to stabilise supplies and curb hoarding.

Sharma said domestic LPG production has increased by over 40 per cent in the past two weeks, with public sector oil marketing companies maintaining pre-crisis levels of refill deliveries. “LPG cylinder delivery continues to be normal,” she said.

To prevent black marketing, enforcement has been intensified, with around 4,500 raids conducted on Friday and 1,800 surprise inspections carried out at petrol pumps and LPG distributorships. State governments have also been asked to strengthen monitoring mechanisms.

The government has urged consumers to avoid panic buying and wait for scheduled home deliveries. It is also encouraging a shift to alternative fuels, particularly piped natural gas (PNG), in areas where city gas networks are available.

So far, in 15 geographical areas, about 13,700 PNG connections have been issued, with nearly 7,000 households shifting away from LPG. Officials said alternative fuels such as kerosene are also being promoted to ease pressure on supplies.

While the situation shows tentative signs of stabilisation, authorities cautioned that supply conditions remain fragile as geopolitical tensions continue to affect global energy flows.

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