New Delhi: Prime Minister Narendra Modi convened an urgent meeting today with Petroleum Minister Hardeep Singh Puri and External Affairs Minister S Jaishankar to discuss the ongoing LPG shortage resulting from the escalating conflict between Iran, Israel, and the United States.
The government has activated a strategic plan to shield domestic consumers from the energy disruptions caused by the Middle East tensions. The crisis has been aggravated by the closure of the Strait of Hormuz, a critical maritime route for India’s energy imports, following military actions involving the US, Israel, and Iran. This strait is vital for India’s energy security, as approximately 62% of the country’s LPG needs are imported through it, with 85-90% of these imports originating from countries like Saudi Arabia.
India’s annual LPG consumption is around 31.3 million tonnes. To manage the crisis, the Ministry of Petroleum and Natural Gas has prioritized LPG distribution, focusing on the domestic sector, which accounts for 87% of total consumption, mainly for household cooking. The remaining 13% serves commercial sectors, including hotels, restaurants, and industries.
As a result of the supply crunch, operations in key hubs such as Mumbai and Bengaluru have been affected, raising concerns from the India Hotels and Restaurants Association. To mitigate the impact, the Petroleum Ministry has ordered refineries to boost LPG production by reducing petrochemical output and has extended the domestic LPG refill booking cycle from 21 to 25 days to prevent hoarding and black marketing.
In addition to domestic consumption, imported LPG is being directed to essential non-domestic sectors such as hospitals and educational institutions. A committee comprising three Executive Directors from Oil Marketing Companies has been formed to evaluate requests from hotels, restaurants, and other industries, distributing gas based on necessity, merit, and product availability.
Confirming these measures, Hindustan Petroleum Corporation Limited (HPCL) stated that efforts are underway to increase LPG production despite geopolitical disruptions. The ministry also emphasized that the committee of EDs will serve as the final authority in allocating supplies for non-essential commercial uses during this period of crisis.