New Delhi, March 10 A panel of executives from oil companies will review complaints about the shortage of commercial LPG cylinders in different cities and make fuel available to meet the genuine needs of hotels and restaurants, a top government official said on Tuesday.
"There is no shortage in supply. We are meeting the needs of domestic households on a priority basis," the official said.
Domestic LPG users are being served on average in two and a half days – the same as before the war, he said.
However, due to the disruptions in energy supplies caused by the escalating conflict in West Asia, there are "limitations" in continuing LPG supplies to industrial and commercial customers for the time being.
This has led to commercial users, such as hotels and restaurants, who buy larger, 19-kg blue cylinders at market price, as opposed to the smaller, 14.2-kg red cylinders for household kitchens, warning of closure.
"Complaints about difficulty in procuring commercial LPG started coming in last evening, and we have constituted a three-member committee to review each case and make available LPG according to their genuine needs," the official said.
"For LPG supply to other non-domestic sectors, a committee of three Executive Directors (EDs) of Oil Marketing Companies (OMCs) has been constituted to review the representations for LPG supply to restaurants/hotels/other industries," the ministry said in a post on X.
In a separate social media post, the three OMCs – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) – said, "In addition to ensuring supplies to all domestic customers, it has been decided to make supplies according to the needs of essential non-domestic sectors such as hospitals and educational institutions."
"For LPG supply to other non-domestic sectors, a committee of three Executive Directors of OMCs has been constituted to review the representations and prioritise the LPG supply," it said.
The official said that anyone wishing to obtain commercial LPG can approach the committee, whose details have been posted on social media. The committee will review each case and make every effort to meet the genuine needs, he said.
"Since non-domestic LPG supply depends on the availability of imported products, the committee may not be able to address every grievance. Requests will be considered based on their merits, product availability, and appropriate decisions will be made accordingly," the oil companies said in the post.
Separately, Oil Minister Hardeep Singh Puri said that India's energy imports are continuing from different sources and routes.
"We are committed to ensuring uninterrupted supply of affordable energy to our domestic consumers," he said. "There is no shortage for domestic consumers and no reason to panic."
The ministry constituted a committee to examine supply issues after a sudden shortage of commercial LPG cylinders alarmed the hospitality sector, with restaurant associations warning that eateries could shut down within days if supplies are not restored.
As the escalating conflict in the Middle East disrupted fuel lifelines, including India's LPG supplies, the government has prioritized domestic cooking gas supplies to households. This has led to a supply crunch for hotels and restaurants which use market-priced commercial LPG.
India consumes about 31.3 million tonnes of LPG annually. As much as 87 per cent of this is in the domestic sector, i.e. household kitchens, and the rest in commercial establishments such as hotels and restaurants.
Of this total requirement, as much as 62 per cent is met through imports. The US and Israel's attack on Iran and Tehran's retaliation have shut the Strait of Hormuz – the conduit through which India gets 85-90 per cent of its LPG imports from countries like Saudi Arabia.
As alternative sources are being explored, the limited supplies available mean the government is prioritizing supplies to the domestic sector, and in the process, commercial establishments have suffered.
Industry sources say the disruption has already begun affecting operations in cities like Mumbai and Bengaluru, as hotels and restaurants struggle to secure cooking gas.
While maintaining that the country has adequate fuel stocks, the ministry in recent days has directed refineries to maximize LPG output by curtailing petrochemical streams and extended the LPG refill booking cycle to 25 days from 21 days.
"In light of the current geopolitical disruptions to fuel supply and constraints on LPG supply, the ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," the ministry said in the post on X.
"The ministry has prioritized domestic LPG supply to households and introduced a 25-day inter-booking period to avoid hoarding/black marketing," it said.
Non-domestic supplies from imported LPG are being prioritized to essential non-domestic sectors such as hospitals and educational institutions, it said.