West Asia Tensions: India Limits LPG to Homes, Hits Hotels & Industry
India has ordered oil refineries to raise liquefied petroleum gas (LPG) output and prioritise household cooking-gas supplies as tensions in West Asia threaten global energy flows. The Ministry of Petroleum and Natural Gas issued the directive amid concerns that disruptions to shipments — many of which transit the Strait of Hormuz — could tighten domestic LPG availability. The ministry reiterated the move in a tweet on March 9, 2026.
The ministry has directed refiners to maximise LPG production and channel additional output primarily to domestic consumers. Officials said households will be given priority to ensure uninterrupted access to cooking fuel if the international crisis worsens. The ministry described the extra refinery output as intended “for domestic LPG use.”
To curb hoarding and panic buying, the government has introduced a 25-day gap between bookings for domestic LPG cylinders. Authorities say this window will help stabilise supplies and support fair distribution across regions. At the same time, officials are reviewing allocations to commercial users — including hotels, restaurants and industries — so that essential household needs are met first if supplies tighten.
India relies heavily on imports to meet its cooking-gas demand, with domestic production covering only part of national needs. That dependence makes the supply chain vulnerable to geopolitical shocks and shipping-route disruptions. With oil prices already volatile, policymakers are closely monitoring market developments and preparing contingency measures to prevent domestic shortages.
Energy experts warn that safeguarding LPG supplies is critical because cooking gas serves hundreds of millions of Indian households and any disruption would have an immediate impact on daily life. For now, the centre’s strategy combines increased refinery output, tighter distribution rules and prioritisation of domestic consumption to cushion consumers from global energy shocks.
Original Source: https://www.firstpost.com/india/west-asia-tensions-push-india-to-review-lpg-supply-for-hotels-industries-as-domestic-demand-gets-priority-13987825.html
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Publish Date: 2026-03-10 06:03:00