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The ongoing war in West Asia has begun to disrupt LPG supplies in India. Escalating conflict around the Persian Gulf and the Strait of Hormuz has delayed shipments and increased freight costs, affecting supply chains. Several restaurants and hotels in cities such as Mumbai and Bengaluru have flagged shortage of commercial LPG cylinders. The central government has asked refiners to prioritise domestic LPG supply and curb hoarding to stabilise availability.
Speaking at the CII Annual Summit, Union Minister Hardeep Singh Puri said India's oil companies are losing ₹1,000 crore every day and the under recovery is going to be ₹1,98,000 crore
Amid the West Asia crisis, the government is considering expanding India's crude oil, gas and LPG reserves to strengthen long-term energy security
Updated On : 12 May 2026 | 10:59 PM ISTOil Minister said PM Narendra Modi's austerity appeal should be taken as a wake-up call and urged to start thinking of "measures" to lessen fiscal strain from West Asia conflict
Updated On : 12 May 2026 | 12:58 PM ISTThe government said India has adequate fuel supplies and stable prices despite rising global energy costs and mounting losses for oil marketing companies
Updated On : 11 May 2026 | 8:02 PM ISTAbout Rs 1,600-1,700 crore per day, over Rs 1 lakh crore in 10 weeks. That's the cost that state-owned oil firms incur for insulating Indian consumers from the global energy shock but ever-widening losses are now raising questions on how long they can continue bearing the cost without financially capitulating. Since the war broke out in the Middle East 10 weeks ago, state-owned oil marketing companies (OMCs) have ensured uninterrupted supplies of petrol, diesel and cooking gas LPG at rates that are way below cost, unlike many global energy systems that imposed rationing or passed through steep price increases. This has resulted in the three OMCs - Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) - running record high under-recoveries (the difference between cost and retail selling price), two sources with direct knowledge of the matter said. The combined under-recovery on petrol, diesel and cooking gas LPG is Rs 1,6
State-run oil marketing companies are facing mounting under-recoveries as retail fuel prices remain largely unchanged despite crude oil hovering around $100 a barrel
Soaring commercial LPG prices are squeezing restaurant margins, forcing eateries to consider menu hikes, switch fuels or absorb rising costs
A tanker carrying liquefied petroleum gas (LPG) for India has sailed out of the Strait of Hormuz and is now headed towards the country, an official statement said on Sunday. The Marshall Islands-flagged LPG carrier MT Sarv Shakti, loaded with 46,313 tonnes of LPG and staffed by 20 crew, including 18 Indians, cleared the key shipping chokepoint on May 2 and is expected to reach Visakhapatnam on May 13, it said. The cargo -- enough to meet half a days requirement of the country -- will partly tide over supply constraints being faced since the start of the West Asia conflict more than two months back. Ship-tracking data showed its position in Oman Gulf on Sunday evening. The very large gas carrier has previously made runs between the Persian Gulf and Indian ports, has been chartered by state-owned Indian Oil Corporation (IOC). Sarv Shakti is the first India-linked tanker to cross the war zone since a weeks-old US blockade of ships tied to Iran began, pushing transits through Hormuz b
Marshall Islands-flagged Sarv Shakti - laden with around 45,000 tons of LPG, commonly used as cooking fuel - appeared to move northward through the waterway
The latest hike in the price of 19-kg commercial LPG cylinders used by hotels and restaurants has dealt a "severe blow" to the hospitality industry already reeling under the impact of closures and job losses, and will aggravate the situation, industry associations said on Friday. They urged the government to intervene and roll back the hike. The prices of commercial LPG - the one used in hotels and restaurants - have been hiked by Rs 993 to a record high of Rs 3,071.50 per 19-kg cylinder. Pradeep Shetty, Spokesperson, Hotel And Restaurant Association (Western India) - HRAWI & Vice President, FHRAI (Federation of Hotels and Restaurants Association of India), said, "Due to the recent rise in LPG prices, a 10 to 15 per cent hike in menu prices is imminent. But even that may not be enough to absorb the impact. We urge the government to urgently intervene, roll back this hike and stabilise LPG prices to give the sector some breathing space. Without immediate relief, the hospitality ...
Opposition leaders criticise steep LPG price hike, warning of impact on small businesses and households, while government cites global energy trends to justify increase
The steep hike in 19 kg commercial LPG prices from May 1 marks the third increase since late February, raising costs for eateries and businesses, while petrol, diesel remain steady
LPG shortages amid global disruption offer India a chance to shift cooking to solar hours, improving energy security while supporting renewable power use, MNRE minister Pralhad Joshi said
Highest LPG volumes sourced from US, as imports from key West Asian suppliers decline
India has raised local output by over a fifth since strikes on Iran began in February, to about 46,000 tons a day
India has accelerated its shift to piped natural gas, with more than 5.01 lakh new PNG connections gasified since March and over 5.68 lakh consumers registering for fresh connections, even as authorities manage LPG supplies amid geopolitical disruptions. With the war in West Asia disrupting cooking gas LPG supplies, the government is pushing households as well as industries to move to piped natural gas -- a more convenient alternative whose supplies have not been very badly hit. LPG users within the reach of a PNG connection have been asked to shift, while orders have been issued for expediting approvals for laying of pipelines that supply gas to burner tips. "Since March 2026, more than 5.01 lakh PNG connections have been gasified," said Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, at a news briefing on Tuesday. Gasified means the start of gas supplies. These connections include ones that may have been applied before the crisis as well as after ...
India's dependence on LPG imports and slow expansion of piped gas networks highlight policy gaps, affordability challenges, and consumer behaviour issues hindering a transition to cleaner cooking fuel
Government prioritises LPG tanker movement through Strait of Hormuz even as cooking gas shortage persists and regional tensions disrupt supply chains
The blending of 20 per cent dimethyl ether (DME) --produced from coal gasification -- with LPG could reduce LPG imports by about 6.3 million tonnes annually, leading to a saving of forex of up to USD 4.04 billion (around Rs 34,200 crore) per year, according to a latest report. Coal gasification converts coal into syngas, which is then transformed into DME's clean-burning fuel that serves as a homegrown substitute for imported LPG. The report assumes significance in the wake of India facing Liquefied Petroleum Gas (LPG) supply constraints since the war broke out in West Asia. According to the report titled 'Coal gasification for energy and chemical security' by EY-Parthenon and New Era Cleantech Solution Ltd -- a domestic coal gasification firm -- "DME, producible from coal gasification, can partially substitute LPG imports". It further said 20 per cent blending could displace approximately 6.3 million tonnes of LPG imports annually. The Bureau of Indian Standards (BIS) has already
India's cooking gas LPG consumption fell by a steep 13 per cent in March as supply disruptions linked to the West Asia conflict hit availability for both household kitchens and commercial users, according to latest official data. LPG consumption was at 2.379 million tonne in March, 12.8 per cent lower than 2.729 million tonne consumed in the same period last year. India imports about 60 per cent of its LPG requirements, much of it via the Strait of Hormuz, which was effectively shut following US and Israeli strikes on Iran and Tehran's retaliation. With supplies from Saudi Arabia and the United Arab Emirates disrupted, the government has cut LPG supplies to commercial establishments like hotels, and industries to safeguard household cooking gas availability. According to the Oil Ministry's Petroleum Planning and Analysis Cell (PPAC), LPG cylinder sold to domestic households fell 8.1 per cent in March to 2.219 million tonne while those sold to non-domestic users was down almost 48 pe