It started as a price shock. Within 72 hours it became a supply crisis. As of March 11, restaurants are shutting across Karnataka and Rajasthan, queues have formed outside gas agencies from Patna to Bengaluru, and induction cooktops have sold out on Blinkit and Zepto across Delhi, Mumbai, and Chennai. The government says there’s no shortage for domestic consumers. The ground situation says otherwise for anyone who runs a kitchen commercially.
The Strait of Hormuz Is the Core Problem
India imports roughly 60–65% of its LPG. About 90% of those imports come from the Middle East and travel through the Strait of Hormuz a narrow corridor that Iran has effectively shut down amid the ongoing US-Iran-Israel conflict. On March 9, the India-bound cargo ship Mayuree Naree was attacked inside the Strait and caught fire. That’s when “rumour” became “reality” for most consumers.
Around 62% of India’s LPG imports specifically move through this route. With Iran warning that ships attempting passage face attack risk, hundreds of oil and gas tankers have pulled back or diverted. The supply chain didn’t slow gradually it stopped fast.
Households Are Still Getting Gas. Restaurants Aren’t.
The commercial shortage is the sharper crisis right now. In Rajasthan, oil marketing companies have told distributors to halt all new commercial bookings. In Karnataka, hotel associations warn that 50% of restaurants could shut within days if supply doesn’t resume. One distributor in Vijayawada reported 350 pending indents sitting unfulfilled, with 200 new orders arriving daily and no stock to fill them.
Black market prices in some areas have hit three times the official rate. In Bihar, the IVRS booking system has stopped connecting calls in several districts. In states like West Bengal, Uttar Pradesh, and Tamil Nadu, long queues at gas agencies reflect something between genuine shortage and fear of shortage and at this point, the difference barely matters.
The wedding industry is also quietly alarmed. Rajasthan expects roughly 30,000 weddings in April. Commercial caterers running on LPG have no reliable timeline for when their bookings will be cleared.
What the Government Has Actually Done
The Essential Commodities Act is now invoked, classifying natural gas as a priority allocation. Refineries have been ordered to ramp up domestic LPG production and channel all additional output to the household market. The Natural Gas (Supply Regulation) Order 2026 places household piped gas and domestic LPG first, CNG for public transport second, and commercial supply last.
The inter-booking period for domestic refills was extended from 21 to 25 days. The government calls it a hoarding-prevention measure. Consumers who need a refill sooner call it an inconvenience. Both things can be true.
Petroleum Minister Hardeep Singh Puri said commercial sectors are receiving 70–80% of normal supply “despite the war situation.” Several state-level reports from Vijayawada, Patna, and Bengaluru don’t reflect that figure.
Alternative Sources Are Already Being Lined Up
India has an existing 2.2 million tonne import contract with the US Gulf Coast. Imports from US suppliers have already been increased by 10% as an emergency measure. Russia, Canada, and Australia are being explored as longer-term alternatives.
India has known for years that sourcing 90% of its LPG from a single geopolitically volatile region is a structural problem. The Hormuz disruption hasn’t created this vulnerability it has just made deferring it impossible.
Frequently Asked Questions(FAQs)
Why is there an LPG gas shortage in India right now?
India imports about 90% of its LPG from the Middle East, and roughly 62% of those shipments pass through the Strait of Hormuz. The US-Iran-Israel conflict has effectively blocked that route, stalling hundreds of tankers. The government has responded by invoking the Essential Commodities Act and prioritising household supply — which means the shortage has largely shifted onto commercial consumers like restaurants and hotels, while domestic cylinders remain available in most areas.
Will domestic LPG cylinder prices go up because of the conflict?
The government is trying to hold retail prices steady for domestic consumers. That said, global crude oil has already crossed $100 a barrel, and black market prices in several districts have reached three times the official rate. If the Strait of Hormuz remains closed for weeks rather than days, domestic price pressure will be harder to contain. The 25-day inter-booking rule was partly designed to reduce panic-driven hoarding that inflates informal prices.
What can you do if your LPG cylinder hasn’t been delivered after booking?
Dealers delaying delivery or charging above the official rate are violating government guidelines both are illegal. File a complaint through the official helpline of your provider: Indane (1800-233-3555), Bharat Gas (1800-22-4344), or HP Gas (1800-233-3555). You can also report black marketing through the consumer portal on your provider’s website. The government has specifically asked consumers to report these cases so action can be taken against the dealers involved.
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