From Strait of Hormuz to Indian kitchens: The hidden risks of LPG dependence

In kitchens across India, the familiar blue flame of a gas stove symbolises both modern convenience and the basic ability to cook and feed families.

India is the world’s second-largest importer of LPG (liquefied petroleum gas), or cooking gas, after China, consuming about 31 million tonnes annually.

Around 60 per cent of this is imported, mostly through the Strait of Hormuz, the narrow shipping route linking the Persian Gulf to the open sea. The remainder is produced domestically, largely as a byproduct of crude oil refining.

India has capped commercial LPG supply at 20 per cent to curb price rises, hoarding amid the West Asia crisis

The price shock and fears of supply disruption have triggered panic booking, hoarding and black-market activity in several cities. The broad industrial and commercial category includes hotels, dhabas, roadside eateries, canteen-style restaurants and community kitchens, all of which now face a 35 per cent cut in gas supply.

In a major decision, the Centre has introduced a 20 per cent limit on the average monthly commercial LPG supply by oil marketing companies (OMCs), in coordination with state governments, Union Petroleum and Natural Gas Minister Hardeep Singh Puri announced in Parliament on March 12, 2026.

Effective from this date, the restriction aims to prioritise domestic LPG consumption and prevent hoarding and black marketing.This means OMCs will now reduce LPG allocation to commercial entities by up to 80 per cent compared with their average monthly supply in previous months.

The measure comes as India, like many other countries, grapples with the fallout from the escalating conflict involving Iran, Israel and the United States.

The conflict has disrupted commercial shipping through the Strait of Hormuz, a strategic chokepoint that carries about 20 per cent of the world’s crude oil, natural gas and LPG trade. With shipping through the route severely affected, the government has begun rationing some energy supplies while trying to shield households and essential sectors.

Across the country, the crisis is already visible in the LPG market. The price of a 14.2 kg domestic LPG cylinder was raised by Rs60 earlier this month, while commercial cylinders used by hotels and restaurants rose by about Rs114, the first increase in nearly a year, as global fuel markets reacted to the West Asia conflict, according to data from Indian Oil Corporation (IOC).

A 14.2 kg domestic non-subsidised LPG cylinder now costs between Rs913 and Rs928.5, depending on the city, applicable since March 7, 2026, according to IOC.

The price shock and fears of supply disruption have triggered panic booking, hoarding and black-market activity in several cities, prompting the Centre to ask states to closely monitor LPG distribution and crack down on illegal stockpiling. Authorities have also tightened consumption rules to conserve supplies. Domestic LPG deliveries remain available, but the minimum refill booking gap has been extended to 25 days to prevent panic buying and diversion.

Commercial LPG supply, meanwhile, has been curtailed, affecting restaurants, bakeries and catering businesses in several cities. Some establishments have reduced their menus or temporarily shut operations due to the cooking gas shortage.

Transport and small businesses are also feeling the squeeze. In parts of southern India, thousands of autorickshaws running on auto-LPG and CNG have been forced off the roads due to fuel shortages. Meanwhile, railway kitchens and institutional canteens are exploring induction cooking and other alternatives.

To stabilise the market, the government has prioritised LPG supply for households and essential services such as hospitals and educational institutions. Refineries have been instructed to increase LPG production and divert additional output to cooking gas supply chains.

Under the framework, piped natural gas (PNG) for households, compressed natural gas (CNG) for vehicles, and natural gas used for LPG production will receive full supply.

Several industrial sectors, however, will face reductions. Refineries and power plants will receive 80 per cent of their previous six-month average gas supply, petrochemical and fertiliser plants 70 per cent, and other industrial and commercial users 65 per cent.

Many of the country’s roughly 100 million migrant workers rely on low-cost neighbourhood eateries and dhabas for their daily meals because they lack cooking facilities at home. Any disruption to fuel supplies for these establishments could push up meal prices or reduce food availability.

Street vendors and small food stalls that serve the cheapest meals — often operating on small LPG cylinders or informal gas connections — are among the most vulnerable. Many require frequent refills and operate on thin margins, meaning supply cuts could quickly translate into reduced operations.

The ministry has prioritised domestic LPG supply to households and introduced a 25-day inter-booking period to prevent hoarding and black marketing.