LPG Shortage, Price Hike And Refill Delays: How Strait Of Hormuz Crisis Is Impacting India’s Gas Supply?

The ongoing disruption in LPG supply has begun affecting essential public services in India. In Pune, authorities have temporarily shut down several gas-based crematoriums due to restrictions on LPG components such as propane and butane.

Officials say the decision was taken after tightening supplies of commercial gas triggered by global energy disruptions linked to the Iran conflict.

LPG Supply Disruption Hits Essential Services

Gas-based crematoriums depend heavily on LPG and related fuel components to operate efficiently. However, as LPG supply becomes tighter across several states, authorities have been forced to restrict its use for non-household purposes.

In Pune, the municipal corporation has temporarily halted operations at crematoriums that use gas-based systems.

Officials say the move is necessary to ensure that domestic cooking gas supply for households remains stable.

Authorities Prioritise Domestic LPG Supply

The government has directed oil companies and refineries to prioritise LPG supply for household cooking gas instead of commercial or industrial consumption.

Because of this policy shift, several sectors that rely on commercial gas-including restaurants, hotels, and crematoriums-are facing shortages.

Municipal officials say crematorium services may resume once LPG supply stabilises.

Families May Need to Use Alternative Facilities

With gas-based crematoriums temporarily shut, families may need to rely on traditional wood-based cremation facilities.

Officials say arrangements are being made to ensure that funeral services continue without major disruptions.

However, the situation highlights how energy supply disruptions can affect even critical civic services.

LPG Price Hike and Shortage Hit Restaurants Across India

Restaurants and hotels in several Indian cities are facing serious operational challenges due to the shortage of commercial LPG cylinders.
The shortage comes at a time when LPG prices have also increased, creating a double burden for businesses that rely on gas for daily cooking.

Commercial LPG Prices Rise

Commercial LPG cylinder prices have increased significantly in recent weeks.

• 19-kg commercial LPG cylinder: Price increased by around ₹115
• Domestic 14.2-kg LPG cylinder: Price increased by about ₹60

Restaurant owners say the price increase has already raised operating costs, and the supply shortage is making the situation worse.

Kitchens Struggle as Gas Supply Drops

Restaurants in cities such as Mumbai and Pune say they depend entirely on 19-kg commercial LPG cylinders.

Many food outlets report that distributors are unable to supply enough cylinders because oil companies are prioritising domestic households.

Some restaurants have already started limiting menu items to conserve gas.

Hotels Warn of Possible Closures

Hotel owners say if the shortage continues for several more days, some establishments may have to reduce operations or temporarily shut kitchens.

The hospitality industry employs thousands of workers, and prolonged disruptions could affect both employees and customers.

Restaurant associations say they are closely monitoring the situation and hoping supply stabilises soon.

The uncertainty around LPG supply has led to panic bookings in several Indian cities.

Households are rushing to book cooking gas refills as the government increases the waiting period between bookings.

Refill Waiting Time Increased

Authorities recently increased the LPG refill waiting period from 21 days to 25 days.
The measure aims to stop hoarding and ensure fair distribution of cooking gas during a period of global energy uncertainty.

Officials say the rule will help manage demand while the government monitors supply.

Delivery Waiting Time Gets Longer

Gas dealers report that delivery waiting times have increased in several cities.
In some areas, consumers who earlier received cylinders within two days are now waiting up to eight days for delivery.

Dealers say booking systems are also experiencing heavy traffic due to increased demand.

Despite the concerns, officials say there is currently no immediate shortage of cooking gas for households. Authorities have urged consumers to avoid panic booking and rely on the regular supply system. The government is also asking refineries to increase LPG production to stabilise availability.

Strait of Hormuz Disruption Behind India's LPG Supply Pressure

Energy experts say the supply pressure is linked to developments in the Strait of Hormuz, one of the world's most important oil and gas shipping routes.
A significant portion of India's LPG imports passes through this narrow waterway.

Imports Drop Sharply

Officials estimate that India's weekly LPG imports have fallen by nearly 30% due to disruptions in shipping routes.
Military tensions and strikes in the Middle East have slowed cargo movement from major suppliers such as Qatar and Saudi Arabia.

Authorities say India currently has sufficient fuel reserves, and petrol pumps across the country are operating normally.