LPG Cylinder Shortage Hits Restaurants and Schools in India

Restaurants and schools in India are running out of LPG cylinders, with some using up to five a day. This is a serious problem for businesses.
By Newsroom | Energy, India |

OFFICIALS CONVENE AMIDST WIDENING LPG DEFICIT

Government officials have convened in multiple states to address reported shortages of Liquefied Petroleum Gas (LPG) cylinders, with commercial establishments like restaurants and educational institutions flagged as priority consumers facing supply disruptions. The interventions come as a significant conflict in West Asia impacts global energy markets, though official statements have, at times, presented a more reassuring picture of India's energy security.

In Tamil Nadu, Minister Muruganandam chaired a meeting at the Secretariat in Chennai, examining the state's LPG shortage. Representatives from various restaurant and educational institution associations petitioned for priority supply. Petroleum companies indicated that while domestic LPG supply could be sustained for approximately 25 days, stocks of commercial cylinders were diminishing. This prompted pleas from associations for government support in facilitating the use of electricity as an alternative to cooking gas.

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Simultaneously, the central government has reportedly formed a grievance-redressal committee and initiated steps to bolster LPG supply. This move follows reports of commercial cylinder shortages in areas like Gurugram and Mumbai. In these cities, hotel and restaurant owners have voiced concerns, with some stating they are using their entire daily allocation of up to five cylinders and have no reserves. The stated government priority is to ensure domestic LPG supplies for households, potentially impacting commercial users.

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GOVERNMENT ATTEMPTS TO STEER SUPPLY AMIDST GLOBAL TURBULENCE

The unfolding situation has prompted discussions at the highest levels, with Prime Minister Modi reviewing the LPG supply situation with oil and foreign ministers. Reports indicate that states and Union Territories have been briefed on the LPG Control Order of March 8, 2026, which directs refineries and petrochemical complexes to maximize LPG production and prioritize domestic household supply. This order clarifies that restrictions on LPG distribution apply to commercial establishments, excluding essential services like hospitals and educational institutions.

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Some opposition voices have labelled the situation an "emergency," criticizing the government as LPG shortages loom, exacerbated by the ongoing war in West Asia between Iran, Israel, and the United States. India, reliant on imports for a significant portion of its liquefied natural gas, particularly from West Asian suppliers, is feeling the reverberations of this conflict.

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CONTRADICTORY SIGNALS ON ENERGY SECURITY

Despite the localized shortages and the geopolitical tensions, official sources have also issued statements asserting that there is no overall shortage of LPG or Liquefied Natural Gas (LNG) in the country. India is reportedly expanding talks with global energy suppliers, including offers from Australia and Canada, to diversify its sources and reduce dependence on single suppliers. This suggests a proactive stance in managing energy security, even as immediate supply concerns manifest.

In a separate development from February 2025, Petroleum Minister Hardeep Singh Puri had indicated that India was nearing LPG saturation, with over 3 crore connections. The focus, he stated then, was shifting towards natural gas for households, which was approximately 20% cheaper. This suggests a long-term energy transition strategy that might be experiencing short-term disruptions.

BACKGROUND: THE SUBTLE SHIFT IN ENERGY FOCUS

The recent flurry of meetings and official statements underscores a palpable tension between immediate supply management and broader energy policy. While India has been pursuing an agenda of expanding natural gas and biofuel usage, the reliance on imported LPG, particularly from volatile regions, remains a critical vulnerability. The LPG Control Order and the prioritization of domestic users appear to be reactive measures to safeguard household energy needs amidst external shocks. The industry’s reliance on multiple cylinders per day, particularly for food service businesses, highlights the direct economic impact of these supply chain disruptions.

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Frequently Asked Questions

Q: Why are restaurants and schools in India facing LPG cylinder shortages?
A conflict in West Asia is affecting global energy markets, leading to less Liquefied Petroleum Gas (LPG) available. This means commercial users like restaurants and schools are finding it harder to get the cylinders they need.
Q: How many LPG cylinders are some restaurants using daily?
Some restaurants in cities like Gurugram and Mumbai are using all of their daily supply, which can be up to five cylinders per day, and they have no extra cylinders left.
Q: What is the government doing about the LPG cylinder shortage?
The government is holding meetings in different states and has formed a committee to help solve the problem. They are also trying to make sure homes have enough LPG and have told refineries to make more.
Q: Will domestic households be affected by the LPG shortage?
The government's main goal is to make sure homes have enough LPG. This means that commercial users, like restaurants and schools, might get less LPG because homes are being prioritized.
Q: Are there any alternative cooking methods suggested for businesses?
Yes, in Tamil Nadu, restaurant and school groups have asked the government for help to use electricity for cooking instead of LPG gas.
Q: Does the government say there is a big LPG shortage in the whole country?
Official sources say there is no overall shortage of LPG or LNG in the country. They are also talking to other countries like Australia and Canada to get LPG from different places.