New Delhi – India is dealing with a big problem in LPG supplies because of the fight in West Asia. The war has blocked the Strait of Hormuz, stopping gas from coming from places like Qatar and Saudi Arabia. Homes are still getting their gas without much delay, but businesses like hotels and eateries are facing tough times. Many have closed or changed what they serve. The government has increased local making of gas and found new ways to get it from other countries. They say people should not worry or buy extra, but this shows how India needs to depend less on imports.
The issue began with attacks on Iran and problems in the Strait of Hormuz. This path is used for 80-90% of India’s LPG from abroad. India uses about 31 million tonnes of LPG a year, but only makes 40% inside the country. The rest comes from Gulf nations. The war, now in its 11th day on March 11, 2026, has stopped ships and delayed gas. This has made prices higher and caused shortages for commercial use. But homes, which use 87% of the gas, are safe because of government rules.
In Mumbai, around 20% of eateries have shut down due to no commercial cylinders. The canteen in Delhi high court now serves only cold food. Street vendors in many cities are scared they will have to stop. In Bengaluru, hotels say supplies stopped on March 9, and many could close from March 10. Chennai has only 1-2 days left, Kolkata has stopped non-home supplies, and Pune has closed gas crematoriums for now. The hotel business, which gives jobs to over 8 million people and earns more than 5.7 trillion rupees, is in trouble. Many are using wood, kerosene, or electric cookers, but this costs more and limits what they can make.
The government says there is no big shortage of fuel. Union Minister Piyush Goyal said on March 11 that India has no lack of fuel even with the world problems. They have raised local LPG making by 25% in refineries. Refineries are working at full speed, using more propane and butane to make extra. Gas from other industries like chemicals is now going to homes. A new rule under the Essential Commodities Act puts homes and transport first, with full supply for cooking and CNG cars. Fertilizer factories get 70%, other industries 80%. This keeps things normal for regular people.
To stop people from buying too much, the time between bookings is now 25 days instead of 21. Officials have checked on those storing extra and told people not to worry. Joint Secretary Sujata Sharma said home delivery is still 2.5 days. India has 25-30 days of LPG in stock, and oil reserves for 6-8 weeks. They are getting gas from the US, Australia, Russia, and more. Now sourcing from 40 countries instead of 27. Two LNG ships are coming. Prime Minister Narendra Modi talked with ministers on March 10 about this. He said Gulf workers are safe and India is working on being self-reliant in energy.
Opposition leaders have blamed the government. Delhi CM Arvind Kejriwal said Modi has turned India into a US follower, linking it to deals. Karnataka Deputy CM DK Shivakumar said hotels in his state are suffering. Tamil Nadu CM M K Stalin asked the PM for help with commercial gas. They say this shows bad planning, but the government says the war is the cause.
If the war continues, prices could go up more. Commercial cylinders are now up to 2,500 rupees in some areas, twice the normal. But with more making and new imports, it might improve soon. The government has a team from oil companies to check requests from hotels. External Affairs Minister S Jaishankar said India’s needs, like energy, are most important. He said users come first.
Small businesses are hit hard. In Tamil Nadu, about 10,000 eateries could close, mostly small ones. In Gujarat’s Morbi, the tile industry might stop for a month because no propane. Fertilizer production is less, which could affect farmers. But homes are okay, thanks to plans like Ujjwala that gave gas to over 100 million poor homes. This shows the focus on common folk.
India’s need for energy is growing quick. Use has gone up 43% in eight years. With votes in five states soon, gas prices are a hot topic. The government is watching ships in the Gulf and talking to suppliers. No big rise in petrol or diesel yet, and crude comes from many places, like 1 million barrels a day from Russia.
The Conflict’s Roots
The war in West Asia started with US and Israel hitting Iran. Iran closed the Strait of Hormuz in reply. This 21-mile wide area carries 15-20 million barrels of oil a day, worth $1.2 trillion yearly. For India, it’s key as 40-50% crude, 50-60% LNG, and 80-85% LPG come through it. The war is 11 days old, ships are stuck, and prices are up worldwide.
Donald Trump warned Iran not to mine the Strait. Oil prices change, but Brent is around $82 per barrel. India is fine for now as only 40% crude goes through there, and much comes from Russia. But LPG is worse hit since most is from Qatar and Gulf.
How It Affects India’s LPG
India brings in 60-67% LPG, 85-90% via the Strait. Yearly use is 31.3 million tonnes, up 43% from 2017. Homes use 87%, business 13%. The block stopped supplies, causing waits. Commercial gas is hard to get, but homes get in 2.5 days. Stocks last 25-30 days, but long war could make it bad. Commercial prices up Rs 115, home Rs 60.
Long lines in Lucknow at gas spots. Same in Bhopal, Hyderabad. It spreads to ceramics in Morbi with no propane, and fertilizers with cuts. This could raise food costs if more eateries shut.
Hardships for Commercial Users
Eateries are suffering most. NRAI calls it a crisis, many could close. Mumbai 20% shut, 50% in danger. Bengaluru stock till afternoon. Chennai 1-2 days. Kolkata no non-home. Pune crematoriums off. Small places and vendors fear end. Losses could be Rs 1,200 crore daily.
NRAI’s Manpreet Singh said most have 2 days stock. Bengaluru’s Subramanya Holla said menus cut. Manjunath Shetty got one instead of three. Morbi’s Mukesh Kundariya plans month off. Many use coal or electric, hard for small.
Homes Stay Safe
Homes are good. Delivery 2.5 days, priority for 332 million users. Ujjwala helped poor. Stocks enough, production up. No issue for cooking or CNG. Panic from rumors, raids on storers.
Sujata Sharma said no panic. Piyush Goyal said no fuel lack. Booking to 25 days to stop black market.
Government Steps
Government moved fast. Force majeure, priority sales. Refineries make more LPG with extra. Panel checks commercial needs. From 40 countries, US spots. LNG coming. PM Modi said self-reliance key, Gulf safe.
Hardeep Singh Puri met PM. Reliance full output. No hike for petrol/diesel.
Petroleum Minister’s Press Conference on March 11
On March 11, 2026, Petroleum Minister Hardeep Singh Puri held a press conference in Delhi to talk about the LPG situation. He said there is no shortage for homes and no need to panic. “India’s energy imports are continuing to flow in from different sources and routes. We have taken steps to ensure that 100% supply of CNG & PNG to domestic consumers is ensured and other industries continue to get 70-80% of their supplies, despite the war situation,” he said. He added, “We are committed to ensure uninterrupted supply of affordable energy to our domestic consumers. There is no shortage for domestic consumers and no reason to panic.”
Puri explained that 4 MMSCMD of gas supply is affected, but they are getting from other places. Two LNG cargoes are coming. Under the Gas Control Order, homes and CNG get full, tea and industries 80%, fertilizers 70%, refineries cut 35%. For LPG, imports are 60%, 90% via Hormuz. But on March 8, they told refineries to make more, adding C3 and C4 to LPG pool. Production up 25%, all for homes.
For commercial, priority to hospitals and schools. A three-member team from IOCL, HPCL, BPCL is checking requests from hotels, talking to states and groups for fair share. On prices, Delhi home cylinder is Rs 913, Ujjwala Rs 613. Government took big costs to keep low. Prices better than neighbors. To stop panic, DAC system for delivery, now to 90%. Booking gap 25 days. OMCs clearing waits. Puri urged no panic buy, save fuel in tough times.
Leaders’ Words
PM Modi: “We are working for self-reliance in energy. Gulf workers are our priority.”
S Jaishankar: “The situation in West Asia is a deep cause for concern. India’s national interest, including energy security, is paramount.”
Piyush Goyal: “Absolutely no shortage of fuel.”
Hardeep Singh Puri: “There is no shortage for domestic consumers and no reason to panic.”
Sagar Daryani, NRAI: “This is a crisis situation that will lead to closure of many restaurants.”
Opposition Views
Arvind Kejriwal: “Modi has made India a US colony. What is the compulsion?”
DK Shivakumar: “Entire hotel industry affected.”
They say no good plan, but officials blame war.
What Comes Next
If war stops soon, supplies normal. Long war could raise prices, hurt growth. India finding new sources, building stocks. This pushes for local energy and green ways.
FAQs
What caused the LPG shortage in India?
The shortage comes from the West Asia war with US, Israel, Iran. Iran blocked Strait of Hormuz, stopping gas from Qatar, Saudi. India gets 80-90% LPG imports there. Delays hit commercial, homes prioritized.
How is it affecting businesses?
Badly. Mumbai 20% eateries closed, 50% risk. Bengaluru shutdowns from March 10. Chennai 1-2 days stock. Kolkata no non-domestic. Losses Rs 1,200 crore day. Switch to wood, electric, menu cuts.
Are homes affected?
No. Delivery 2.5 days. Priority full. Stocks 25-30 days. Booking 25 days to stop hoard. Ujjwala safe.
What is government doing?
Production up 25%, divert from industry. Source 40 countries, two LNG coming. Raids hoarders. Panel for commercial. No panic.
What did Hardeep Puri say in March 11 press meet?
No home shortage, no panic. Imports from new routes. Production up 25%, C3 C4 to LPG. Committee for hotels. DAC to stop misuse. Prices low, govt absorbs costs.
Will prices rise more?
Commercial up Rs 115, home Rs 60. No quick petrol/diesel hike. War long, maybe more. Watching.
How long this last?
Depends war. Short, weeks normal. Long, worse. Stabilizing with production, imports.