India Faces LPG Crisis Amid Ongoing Tensions in West Asia

India is currently grappling with a significant LPG crisis, exacerbated by ongoing tensions in West Asia. The situation has led to a decline in panic bookings, but concerns about gas supply remain. The government has implemented strict measures for consumers with both piped gas and LPG connections, while also mandating e-KYC for all LPG users. The crisis is affecting not only households but also hotels and restaurants, with many establishments facing operational challenges. As the government monitors the situation, experts warn that prolonged tensions could worsen the LPG shortage. Read on to learn more about the implications of this crisis.

By Narendra Chaudhary Mar 16, 2026, 13:44 IST

Impact of LPG Shortage on India

The ongoing tensions in West Asia have led to a significant LPG crisis in India, affecting both the general public and various industries. Although the government's efforts to curb panic bookings are starting to show results, concerns regarding gas supply persist.

Decrease in Panic Booking

According to the Ministry of Petroleum, there has been a noticeable decline in panic bookings for LPG cylinders in recent days. While domestic LPG bookings reached approximately 8.8 million on Friday, they dropped to around 7.7 million on Saturday. The government reports that its appeal to avoid unnecessary bookings is yielding positive outcomes.

Increase in Online Bookings

Additionally, online bookings have seen an uptick. Previously, about 84% of bookings were made online, which has now risen to approximately 87%. It is important to note that excessive calls in recent days had disrupted the booking system, causing many consumers to wait in long lines outside gas agencies. However, the ministry clarified that no gas distributor in the country has completely run out of gas, and measures are being taken to maintain regular supply.

Government Measures for LPG Availability

In light of the limited availability of LPG, the government has taken significant steps to enforce stricter regulations on consumers with both piped gas and LPG connections. These consumers have been instructed to surrender their LPG connections. Furthermore, households with piped gas will no longer receive domestic LPG cylinders from public oil companies. This decision has been implemented through a notification under the Essential Commodities Act, aimed at ensuring that domestic LPG is available to families that genuinely need it.

Mandatory E-KYC for LPG Consumers

Moreover, the government has made biometric verification, or e-KYC, mandatory for all domestic LPG consumers. This process can be completed from home using the mobile app of their oil marketing company and the Aadhaar app. Consumers can also reach out to their gas distributors if needed.

Widespread Impact on Businesses

The LPG crisis is not limited to households; hotels, restaurants, and industries are also severely affected. The government has reduced the supply of commercial cylinders to just 20%, causing operational difficulties for many hotels and restaurants in various cities. Some large establishments have resorted to cooking with wood, while smaller eateries find this option unfeasible. Many have cut down their menus and are focusing on quicker-to-prepare dishes.

Price Hikes in Vijayawada

In Vijayawada, the shortage of gas has led hotels and small eateries to increase food prices as they are forced to purchase cylinders at inflated rates from the black market. The hotel industry in Bengaluru has also suffered a significant blow, with reports indicating a decline of 25% to 30% in business. Many places have removed fried items and snacks from their menus and reduced operating hours.

Street Food Vendors Struggling

Street food vendors in Bhopal are also feeling the pinch, with businesses dropping by nearly 40% due to the difficulty in obtaining commercial gas cylinders. Many vendors have been compelled to temporarily halt their operations.

Laborers in Patna Facing Severe Challenges

In Patna, the crisis has become even more severe for laborers living in rented accommodations. Many are now relying on wood or other makeshift fuels for cooking. They are using leftover wood from construction sites as fuel. Numerous laborers report that despite waiting in long lines, they are unable to secure gas cylinders and often have to buy them at exorbitant prices from the black market.

Industry Calls for Support

The industrial sector is also feeling the impact. The Apparel Export Promotion Council has urged the Tamil Nadu government to include the textile export industry in the 20% allocation of commercial gas. The council argues that several production stages, such as dyeing, washing, and finishing, rely on LPG, and the shortage is disrupting the production processes of small and medium enterprises. The LPG crisis has even reached IT companies, with many large firms reducing their canteen menus and advising employees to bring food from home.

Concerns Over Crude Oil Supply

Meanwhile, concerns about crude oil supply persist due to the tensions in West Asia. However, during an attack on the Fujairah oil terminal, an Indian-flagged tanker successfully departed with approximately 80,800 metric tons of crude oil for India, with all Indian crew members reported safe. Rising crude oil prices are also impacting air travel, leading several airlines to increase fuel surcharges, which has resulted in higher airfares, prompting passengers to book tickets in advance for future travels.

Government Monitoring the Situation

The Modi government has stated that it is continuously monitoring the situation and taking all possible measures to maintain regular gas supply in the country. However, experts warn that if tensions in West Asia persist for an extended period, the LPG crisis could deepen further.