Iran–Israel Conflict: India Faces Gas, Fuel Supply Strain; Government Prioritises Domestic LPG

India gas import crisis: The Ministry of Petroleum has instructed state-owned oil companies to supply available LPG cylinders to domestic consumers first, and only then for commercial use.

Tensions continue in the Middle East following the death of Iran's Supreme Leader Ali Khamenei. Iran is facing continuous attacks from Israel and the United States. Iran is also retaliating by attacking Israel. Amidst fears of disruption in gas imports due to the war, the central government has decided to prioritise domestic LPG consumers.

The Ministry of Petroleum has instructed state-owned oil companies to supply available LPG cylinders to domestic consumers first, and only then for commercial use. Additionally, the ministry has extended the waiting period for cylinder refills from 21 days to 25 days.

Reports of Shortages in Some States

According to a report by The Indian Express, news of LPG and fuel shortages has emerged from several states, including Bihar, Maharashtra, and Punjab. However, the central government has clarified that petrol pumps and gas stations across the country are operating normally and there is no major fuel shortage.

What did the Ministry say in its Order?

In its order, the Ministry of Petroleum stated that public sector oil marketing companies (OMCs) should ensure that the LPG procured is primarily supplied to domestic consumers.

The government has also directed all oil refineries and petrochemical units in the country to use propane and butane gas exclusively for LPG production, instead of for manufacturing other petrochemical products.

Concerns in the Hotel-Restaurant Industry

Indeed, the hotel and restaurant industry also appears concerned following this order from the ministry. Meanwhile, the National Restaurant Association of India has warned that many restaurants could shut down if the supply of commercial LPG cylinders is disrupted.

The Bengaluru Hotels Association has also stated that due to the gas shortage, many restaurants in the city will be unable to operate from Wednesday.

Following this, the Ministry of Petroleum clarified that imported LPG for non-domestic use will be supplied to essential sectors such as hospitals and educational institutions. A committee comprising directors from three oil companies has been formed to review the demand from hotels and restaurants.