New Delhi: Commercial LPG consumers have begun facing shortages in several cities across the country, including Mumbai, Bengaluru, and Punjab, amid the fuel supply crunch triggered by the US-Israel war on Iran, with restaurants in some areas warning of possible closures due to insufficient fuel.
Eateries, hotels, malls, offices, and community kitchens are among the primary commercial users of LPG. Several restaurant associations have warned that prolonged shortages could force temporary shutdowns, affecting diners, tourists and employees.
In Pune, operations at some crematoriums were impacted after the municipal body shut a few furnaces due to the shortage of LPG. Factories are also reporting an LPG supply crunch.
LPG dealers reported a surge in bookings from households, as consumers rushed to stock up amid fears of supply disruptions due to the West Asia conflict. Many customers hurried to refill empty cylinders as a contingency.
Supplies to households have been prioritised, which is affecting commercial customers as overall LPG availability has been hit by the war, said an oil company executive.
Meanwhile, domestic LPG consumers will now need to maintain a 25-day gap between bookings for two cylinders, a person said, compared with 21 days earlier.
Among fuels, LPG makes India particularly vulnerable as the country imports about two-thirds of its consumption. Nearly 90 per cent of these imports come from the Gulf, and supplies from the region have entirely stopped.
Efforts are underway to secure alternatives from the US, which supplies about 10 per cent of India’s LPG needs. However, shipments from the US take about 45 days to reach India, compared with less than a week from the Gulf.
The government has also asked refineries to maximise LPG production and directed GAIL and ONGC to extract as much LPG as possible from the rich gas they process.
