New Delhi: India is currently facing a growing LPG (Liquefied Petroleum Gas) supply crisis, with reports of shortages and rising prices across several cities. Restaurants, hotels, and small food businesses are among the most affected, while the government has stepped in with emergency measures to protect household cooking gas supply.
The situation has developed quickly in March 2026 due to global geopolitical tensions and disruptions in energy supply chains, raising concerns about cooking gas availability in India.
What is the LPG Crisis in India?
The LPG crisis refers to the sudden shortage and price increase of cooking gas cylinders in several parts of India. The shortage is particularly affecting commercial LPG cylinders used by restaurants, hotels, and food vendors, while domestic households are being prioritized for supply.
Reports indicate that many restaurants and food businesses in major cities like Bengaluru, Mumbai, Chennai, and Kolkata are struggling to obtain LPG cylinders needed for daily cooking operations.
Industry groups warn that if the shortage continues, many eateries may temporarily shut down, leading to economic losses and disruption to consumers who rely on these establishments for meals.
Main Reasons Behind the LPG Crisis
1. Middle East Conflict Affecting Energy Supply
The biggest reason for the LPG shortage is the ongoing conflict in West Asia, which has disrupted oil and gas supply routes. Tanker traffic through important energy shipping lanes like the Strait of Hormuz has slowed, affecting global LPG supply.
India imports a large portion of its LPG from countries in the Gulf region such as Qatar and Saudi Arabia, making it highly sensitive to disruptions in that area.
2. India is One of the World’s Largest LPG Importers
India is the second-largest importer of LPG in the world, meaning global supply problems can quickly affect domestic availability.
When global energy supply becomes unstable, the impact is often seen in India through price increases or temporary shortages.
3. Government Prioritizing Domestic LPG Supply
To ensure that households do not face cooking gas shortages, the government has asked oil companies to prioritize domestic LPG connections over commercial use.
As a result, hotels, restaurants, and food businesses are receiving fewer LPG cylinders, creating a shortage in the hospitality industry.
4. Panic Buying and Increased Bookings
Another reason for the shortage is panic buying by consumers. LPG bookings have increased by around 15–20% in some regions, as people fear future shortages.
This sudden spike in demand has further strained the distribution system.
LPG Cylinder Prices Increase in India
Along with supply problems, LPG prices have also increased recently.
- Domestic LPG cylinder price increased by ₹60 per cylinder in March 2026.
- A 14.2 kg LPG cylinder now costs around ₹913 in Delhi.
Commercial cylinders used by restaurants have seen even larger price increases, adding financial pressure on small businesses.
Cities Most Affected by the LPG Shortage
The LPG crisis has been reported in several major cities across India, including:
- Bengaluru
- Mumbai
- Chennai
- Kolkata
- Jaipur
In some places, distributors have temporarily halted new bookings for commercial LPG cylinders, affecting restaurants and roadside food vendors.
In Bengaluru, hotel associations even warned that some establishments might suspend operations if the supply disruption continues.
Impact on Restaurants, Hotels and Small Businesses
The LPG shortage has hit the hospitality and food service sector the hardest.
Many businesses depend entirely on LPG for cooking. Without it, operations become very difficult. Some major impacts include:
- Restaurants reducing their menu items
- Temporary shutdown of small eateries
- Increased food prices
- Job uncertainty for workers in the hospitality sector
Industry groups have asked the government for urgent intervention to stabilise LPG supply.
Government Steps to Control the Crisis
The Indian government has already taken several steps to prevent a bigger crisis.
Increasing LPG Production
Refineries and oil companies have been instructed to increase LPG production and redirect supply for households.
Importing LPG from Other Countries
India has signed contracts to import about 2.2 million tonnes of LPG from the US Gulf Coast in 2026 to diversify supply sources.
Preventing Hoarding
Authorities have increased the minimum gap between LPG bookings to 25 days to stop panic buying and hoarding.
These measures aim to ensure that domestic consumers continue to receive cooking gas without disruption.
Subsidy Support for Poor Households
The government continues to provide financial support through the Pradhan Mantri Ujjwala Yojana (PMUY).
Under this scheme:
- Eligible households receive ₹300 subsidy per LPG cylinder.
- The subsidy applies to up to 9 refills per year.
The scheme currently benefits over 10 crore households across India, helping low-income families access clean cooking fuel.
Future Outlook: Will the LPG Crisis Continue?
Energy experts say the LPG situation will depend mainly on global geopolitical developments in the Middle East. If supply routes stabilise, LPG availability in India is expected to improve in the coming weeks.
The government has also assured that domestic LPG supply will remain secure, and emergency steps are being taken to avoid long-term shortages.
However, until global energy markets stabilise, commercial LPG supply may continue to remain tight, especially for restaurants and small food businesses.
Conclusion
The LPG crisis in India highlights how global geopolitical events can quickly impact essential resources like cooking gas. Supply disruptions in the Middle East, rising energy prices, and increased demand have created temporary shortages in several cities.
While the government is prioritizing household LPG supply and increasing production, industries like restaurants and hotels are currently facing major challenges.
If global energy supply chains stabilise soon, experts believe the LPG situation in India will gradually improve in the coming months.
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