Commercial LPG Shortage Live Updates: 20% Mumbai Hotels Already Shut; People Line Up At Service Centres Amid Panic

As the widening conflict in the Middle East disrupted fuel lifelines, including India's LPG supplies, the government has prioritised domestic cooking gas supplies to households. This has led to supply crunch for hotels and restaurants which use market priced commercial LPG.

"For LPG supply to other non-domestic sectors, a committee of three Executive Directors (EDs) of Oil Marketing Companies (OMCs) have been constituted to review the representations for LPG supply to restaurants/hotels/other industries," the ministry said in a post on X.

Mahanagar Gas Ltd. (MGL) on Tuesday reassured its customers that domestic piped natural gas (PNG) supply will remain unaffected, despite heightened volatility in global energy markets triggered by rising tensions in the Middle East.

"In view of the prevailing geopolitical developments affecting global energy markets, there have been speculations regarding possible curtailment of gas supplies by MGL to its customers. Currently no reduction in gas availability is being faced by MGL and MGL continues to maintain normal CNG & PNG supplies across its operational areas," it said in a statement.

Chennai Hotels Association President M Ravi addressed the LPG crisis and emphasised that the current situation is worrisome. "We are very sorry to say but we are going to shut down restaurants within 24 hours," he said. 

Another member of the association urged the state and central government to take the issue seriously. "Because of Iran Gulf war, the short supply of gas to restaurants is alarming, they (state and central governments) need to sort out the shortage," he remarked. 

ALSO READ: LPG Shortage: Chennai Hoteliers Body Says 'Will Have To Shut Restaurants Within 24 Hours'

Indian Hotel & Restaurant Association (AHAR) President Vijay K. Shetty says, “After the US-Israel vs Iran war, supply of cylinders at our restaurant has been drastically hit, especially after Thursday. The crisis has been increasing since the past two days. 20% of our restaurant has already been closed, and I am also receiving messages from our members from all over Mumbai that there is black marketing going on regarding the LPG cylinder… The Consumer Protection Minister Chhagan Bahujbal has assured me of raising the concern before CM Devendra Fadnavis and would try to find a solution.”

Panic buying has already set in, with refill bookings surging since Monday morning. Families with two-cylinder connections rushed to dealer outlets to secure new bookings. "A new notification from the Union Ministry of Petroleum stipulates that domestic consumers can only book a new refill 25 days after receiving one cylinder," a Times of India report quoted a dealer as saying.

ALSO READ: Mumbai Hit By LPG Supply Disruptions Amid Iran War — Check New Rule On Refill Booking

Hotels and restaurants in Chennai are facing a severe crisis due to disruption in supply of commercial LPG cylinders, with the city's hotel association warning that many establishments may be forced to shut down if the situation continues. 

In a letter addressed to Prime Minister Narendra Modi on March 9, the Chennai Hotels Association requested urgent intervention to ensure uninterrupted supply of commercial LPG to the food industry. The association said the shortage had already begun affecting restaurants and related services.

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Indian government-owned oil marketing companies on Tuesday said they will review requests from commercial establishments for supply of liquefied petroleum gas based on "merit, necessity, and product availability" amid severe shortage due to the Middle East conflict.

"In light of current geopolitical disruptions affecting global fuel supply, steps have been taken to enhance LPG production and prioritise its availability for domestic consumers and essential non-domestic sectors such as hospitals and educational institutions. Requests from other non-domestic sectors will be reviewed by a committee of Executive Directors from Oil Marketing Companies and prioritised based on merit, necessity, and product availability," a joint statement from Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. said.

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• Domestic production of LPG has increased by 10% in the last two days
• The Rs 60 increase in LPG cylinders has nothing to do with the current crisis, it was decided earlier.
• As before, there is still a gap of 2.5 days between booking and delivery of LPG, but new bookings will be made after 25 days.
• Before this crisis, 60 lakh LPG cylinders were distributed daily, still the same is happening.
• The problem and long queues at some places for LPG are because some people are rushing to get LPG in a panic.
• Crude oil supply from Non Hormuz sources is now 70 percent, which was 60 percent two days ago and 50 percent 10 days ago.
• Now we are buying crude oil from 40 countries
• All refineries in the country are running at full capacity
• The country has a storage capacity of 70 days
• Interest of domestic consumers is paramount
• On the problems facing commercial cylinders: If there is any problem, we are seeing it, but there is no attempt to hoard it.
• However, induction is used in many places
• If there is a choice between commercial and domestic consumers, preference will be given to domestic consumers
• We were in trouble before, now we are not
• We are looking at the next few days, if today's situation persists, we will be in a comfortable position

Government Sources

• Sourcing from non Hormuz sources is at 70%, it was at 55% before the war began 
• India went into the crisis well prepared 
• Had this happened 12 years ago, situation would have been bad 
• Have built a strong and resilient supply architecture

Top Govt Sources to NDTV Profit 

• India has no plans of stopping exports to countries 
• India has a long and rich history of exporting crude 
• Domestic consumers are the priority 
• Nation comes first, exports in line with that 
• Several new countries have started approaching to buy more crude

Top Govt Sources to NDTV Profit 

• LPG output has been increased as per previous orders 
• A committee has been formed and a gazette notification has also been issued 
• Supplying 60 lakh cylinders daily, that hasn't changed

Top Govt Sources to NDTV Profit 

• Rs 60 hike in LPG not related to present crisis
• Rs 60 hike was in the pipeline from sometime
• Price hike was in pipeline in order to make it up for past losses of OMCs 
• We are getting all kind of consignments from all over the world 
• In regular touch with OPEC, IEA and others

Top Govt Sources to NDTV Profit 

• Diversified sourcing of crude, not facing any shortage in sourcing 
• All refineries are operating at 100% throughput 
• All petrol pumps and gas agencies are well stocked

Top Govt Sources to NDTV Profit 

With the tensions in Middle East still existing top government officials said that there is no crisis at the moment. They added that we were in crisis till a few days ago, but not anymore. People in the know on Tuesday said that there is no shortage of crude, ready products or supplies.

Sources also pointed that the government has secured more LNG & LPG from other countries. They also added that more such LNG & LPG will come to India depending on the geography.

Top Govt Sources to NDTV Profit 

Karnataka Chief Minister Siddaramaiah on Tuesday sought Petroleum Minister Hardeep Singh Puri's intervention amid concerns over shortages in the supply of commercial LPG gas cylinders in Bengaluru and flagged the impact on daily life.

This letter comes on the backdrop of Bangalore Hotels Association announcing that the supply of commercial gas cylinders had been stopped, affecting services.

READ FULL STORY HERE: Commercial LPG Shortage In Bengaluru: CM Siddaramaiah Writes To Hardeep Singh Puri, Flags Direct Impact

Several Indian cities are facing disruption of liquefied petroleum gas (LPG) cylinders, with restaurants and hotels in Indian cities forced to shut. The shortage of commercial LPG cylinders is being reported in cities such as Mumbai, Bengaluru and Kolkata.