“The tea is 15 rupees,” said the tea stall vendor outside Noida Sector 16A metro station, apologetically handing over a cup of tea that had suddenly become more expensive.When asked why the price had increased, the vendor offered a brief explanation with tired eyes, the “cylinder has gone very costly.” Even the samosas and pakoras at nearby stalls were being served cold. Cooking gas had become scarce, forcing many vendors to cut back on preparation. The scene reflects a broader reality unfolding across India as the ongoing Middle East conflict begins to affect everyday life thousands of kilometres away.Disruptions in energy shipments and rising global oil prices are now spilling into Indian households, factories, hostels and restaurants. Liquefied Petroleum Gas (LPG), a key fuel for cooking and several industries, has become increasingly difficult to obtain in many places, triggering panic bookings, long queues outside gas agencies and reports of black marketing.While the government maintains that supplies remain adequate, the situation on the ground tells a more complex story!
People wait in a long queue to refill their LPG in UP (Photo: ANI)
How global tensions triggered the LPG disruption
The current crisis has been linked to the widening conflict in the Middle East involving Iran, the United States and Israel. The situation has disrupted vessel movement through the Strait of Hormuz, one of the world’s most critical maritime energy routes.The narrow waterway carries roughly one-fifth of global oil supplies and a large portion of the world’s LPG shipments. Any instability in the region sends shockwaves through global energy markets.The resulting volatility has quickly translated into higher LPG costs and supply uncertainties in India, which depends heavily on imports for its cooking gas needs.
As per reports, India imports nearly 60% of its LPG requirement, and about 90% of those shipments pass through the Strait of Hormuz. This concentration of supply routes means geopolitical disruptions in the Gulf region can directly affect LPG availability in any country.
How India became highly dependent on LPG imports
India’s dependence on LPG imports has grown sharply over the years, mainly due to rising domestic demand that has outpaced production.LPG is produced as a byproduct during crude oil refining or natural gas processing. While India has increased imports of both crude oil and liquefied natural gas (LNG), LPG imports have risen even more dramatically.Between 2011–12 and 2024–25, crude oil imports increased by about 40% in volume, while LNG imports doubled during the same period.
However, direct LPG imports have seen the steepest rise. They surged from just 1,722 thousand metric tonnes (TMT) in 1998–99 to 20,667 TMT in 2024–25, marking a nearly 12-fold increase over 27 years.This trend highlights a key shift in India’s energy basket. In 1998–99, LPG made up only 7.2% of total petroleum product imports. By 2024–25, LPG’s share had jumped to around 40%, making it the largest imported petroleum product by volume.But why? The gap between domestic production and consumption further explains this dependence. In FY24, India consumed 29.7 million tonnes of LPG, while domestic production stood at just 12.8 million tonnes, with the rest met through imports. In FY25, consumption rose to 31.3 million tonnes, while production remained unchanged at 12.8 million tonnes. Early estimates for FY26 show consumption at around 28 million tonnes, with production at about 10.7 million tonnes, again indicating heavy reliance on imports.Overall, India’s growing demand for cooking gas driven by rising household usage and policy push for cleaner fuels has made LPG one of the most import-dependent energy products in the country.
Rising prices add pressure on households
As of March 16, 2026, the price of a domestic 14.2 kg LPG cylinder in New Delhi is Rs 913. This has recently been hiked from Rs 853 earlier. Prices vary across major cities in India, reflecting regional transportation costs and local taxes. The rate currently stands at Rs 939 per cylinder in Kolkata, Rs 912.50 in Mumbai, and Rs 928.50 in Chennai. In Bengaluru, the price is Rs 915.50, while Bhubaneswar records a rate of Rs 939 per cylinder. The cost is relatively lower in Chandigarh at Rs 862.50, whereas consumers in Gurgaon pay Rs 921.50. The highest among these major cities is in Hyderabad, where the price has reached Rs 965 per cylinder.These rates apply to domestic cylinders used for household cooking. However, consumers say the bigger problem is availability. In several places, commercial LPG cylinders are reportedly being sold on the black market for nearly double the normal price. Cylinders that typically cost around Rs 1,400 are being sold for as much as Rs 3,000.The scarcity has pushed many small businesses to the brink.
Restaurants shut, street vendors struggle
Hotels, restaurants and food stalls that rely heavily on commercial LPG have been among the hardest hit.Several eateries have either reduced operations or temporarily shut down due to the shortage. For smaller vendors such as tea stalls and snack shops, cooking gas shortages mean cutting back on production or raising prices.This has had a negative impact on livelihoods. Workers in the hospitality sector face reduced wages or job losses as businesses struggle to stay open.Manufacturers are also beginning to feel the strain. Industrial facilities that use LPG for certain processes and for staff canteens report growing difficulty maintaining operations.
Factories revive firewood stoves
In several industrial areas, companies are experimenting with alternative cooking arrangements for workers. Factory canteens have begun reviving firewood stoves, a practice largely abandoned years ago.Some companies are switching to electric cooking devices such as induction cooktops, electric rice cookers and electric roti makers.Menus have also been simplified. Meals requiring significant gas consumption have been removed, while packaged foods, sandwiches and ready-to-eat items are being served instead.In some facilities, even tea supplies have been cut back to conserve fuel.The shortage is also beginning to affect labour mobility. The Automotive Component Manufacturers Association of India warned that the situation could push migrant workers to return to their hometowns if cooking facilities remain unavailable.“Workers shifted to small gas-enabled burners for cooking purposes as usage of wood was discouraged due to air pollution. Now, with LPG cylinder shortage, they are finding it difficult to cook at home, and also some of the factory canteens are shut, forcing them to leave for their native places,” said Vinnie Mehta, Director General of the association.“Currently, the situation is not like the COVID pandemic, but the situation can escalate if not resolved,” Mehta added.
Panic bookings overwhelm LPG systems
The shortage has also triggered panic buying across several cities. Consumers have rushed to book cylinders through mobile apps, websites and IVRS numbers, overwhelming booking systems and causing technical failures.Many people reported that online platforms crashed or displayed “server down” messages. As a result, thousands of customers have been forced to visit gas agency offices in person.Outside LPG outlets in cities such as Delhi, Gurgaon, Mumbai, Kolkata, Lucknow and Chennai, long queues have become a common sight.Women carrying empty cylinders, elderly residents and office workers who had taken time off from work have been waiting for hours outside distribution centres.Shashi Kant Sharma, vice-president of Federation of LPG Distributors of India, said the system was not built to handle such heavy traffic.“Bookings have risen tenfold, so the system has slowed. We are working on it at the backend,” he said. Even those who successfully placed orders have reported cancellation alerts or delays in delivery.The shortage is affecting vulnerable households most severely.Radha Rani, a 60-year-old resident of Delhi’s Ajmeri Gate area, was seen standing in a queue outside a gas agency with her grandson in her arms.“My three sons work. My daughter-in-law had a baby 15 days ago, and I have been coming here three days in a row,” she told TOI.According to her, the agency claims the supply runs out before her turn arrives. Others complain that phone calls to gas agencies go unanswered.A tea vendor in Noida said, “I tried calling the agency a lot many times but they didn’t pick or return my calls.”At some locations, police personnel have been deployed outside gas agencies to manage crowds.
Hostels and PG residents hit hard
The LPG shortage is also affecting students and working professionals living in paying guest hostels across the country.Hostel operators say they are struggling to maintain food services due to the scarcity of cylinders. Residents report that food quality has declined and meal options have been reduced.Many said the same breakfast dishes are repeated every day, while food cooked in the morning is sometimes reheated and served again for dinner.PG hostel owner in Vijayawada, K Deva Rani said operators were facing immense pressure. “Gas cylinders are not easily available, and in some cases we must arrange alternative cooking methods. Costs increased sharply, and we request students to cooperate until normal supplies are restored,” she told TOI.
Ready-to-cook foods trend back
As cooking gas becomes scarce, many households are turning to ready-to-cook or ready-to-eat food products. Retailers report that sales of frozen snacks, instant noodles and packaged meals have surged by nearly 20% month-on-month.“Categories such as ready meals, frozen snacks, instant noodles and ready-to-cook products have seen strong traction, leading to about a 10-12% rise in this segment. While the surge appears temporary, we are proactively stocking these categories to ensure adequate availability,” said Karan Ahuja, spokesperson at premium grocery retailer Le Marche.Food delivery companies and retailers have also begun promoting induction-friendly cookware and electric cooking appliances.Analysts say the shift toward convenience foods, which surged during the Covid-19 lockdowns, may once again become a lasting trend.
Black marketing and ghost deliveries surge
Alongside shortages, reports of black marketing and fraudulent deliveries have surfaced in several cities. In various cities, residents have complained that LPG cylinders are being marked as delivered in official records without actually reaching consumers.Abdus Salam, a resident of Patna’s Bhagwanpur, said his mother’s LPG account showed a refill delivered even though no cylinder had been received.“The gas agency sent a message showing a refill delivered on Feb 24, with the next booking allowed only on April 11, 2026. We did not take any cylinders in the last one year. We didn’t even book the gas, someone took it away. This is black-marketing by the gas agency. I’m really troubled by this,” he wrote on social media.Another resident said he paid for a refill but never received the cylinder. These complaints have raised concerns that some cylinders may be diverted to the black market while digital records are manipulated to show deliveries.
Government says supplies remain adequate
Despite the widespread concerns, government officials say there is no major shortage of fuel in the country. Sujata Sharma, joint secretary at the ministry of petroleum and natural gas, said crude oil inventories remain sufficient and refineries are operating at full capacity.During an inter-ministerial briefing on Tuesday, Sujata Sharma advised judicious consumption of LPG and also advised using alternate sources for cooking.“I would like to reiterate that the situation still remains a matter of concern. However, no LPG distributor is facing a dry-out situation at present. In addition, LPG supplies and cylinder deliveries for all domestic consumers are continuing as usual,” she said.“With regard to online booking, I would like to inform you that there has been significant improvement, and as of today, nearly 94% of cylinder bookings are being made online. There has also been improvement in the delivery authentication code system, which has now reached 76%. As far as commercial LPG supplies are concerned, these were initially completely halted but were later partially restored,” she added.The government has also said that supplies of PNG and CNG for transport and domestic use are being maintained fully.Authorities say domestic LPG supply is being prioritised, even as commercial LPG availability remains restricted. State governments have begun conducting raids to prevent hoarding and black marketing of cylinders.
Alternative fuels and policy measures
To ease pressure on LPG supplies, authorities have activated alternative fuels such as kerosene and coal for certain sectors including restaurants and hospitality businesses.Commercial LPG sales, which had earlier been curtailed, have now been partially restored.Consumers in cities with piped natural gas infrastructure are being encouraged to shift to PNG connections. Gas distribution companies have begun offering incentives to promote the transition.Financial analysts warn that if the Middle East conflict continues, the consequences could extend beyond LPG shortages.A report by Morgan Stanley said supply disruptions from the region could affect several industries across Asia, including manufacturing, agriculture and transport.“The rise in oil prices, if sustained, will take Asia’s oil burden to above its 10-year average. But beyond the rise in oil prices, we are more concerned about potential disruption risks to supply in the case of LNG,” the report said.Countries such as India, Thailand, South Korea and Taiwan are considered particularly exposed to such risks. The Middle East is also a major supplier of industrial materials such as fertilisers, sulphur, aluminium, helium and petrochemicals, which are critical inputs for several sectors.
Shipping routes remain under watch
In a small relief for India, two LPG carriers have recently crossed the Strait of Hormuz safely, with more to be back hopefully.Reports indicate that Iran allowed Indian-flagged LPG tankers to transit the region despite rising tensions. Currently, around 28 Indian vessels are operating in the Persian Gulf, with authorities closely monitoring their movement to ensure safety.For now, the effects of the Middle East conflict continue to ripple through India’s kitchens, factories and markets.What began as a geopolitical confrontation thousands of kilometres away has quickly turned into an everyday struggle for millions of people trying to cook meals, run businesses or keep factories running.Until energy shipments stabilise and supply chains return to normal, the humble LPG cylinder has become one of the most visible reminders of how global conflicts can reshape daily life at worst.(With inputs from Khushi Bhuta, Venu Lanka)
