A familiar sign of stress in commodity markets has begun to appear across parts of India with long queues witnessed outside LPG agencies. When demand spikes suddenly while supply chains tighten, the effects often surface quickly and visibly. That is exactly what is happening now as disruptions linked to the escalating conflict in West Asia begin to affect cooking gas supplies headed for India.
The country is starting to feel the pressure of a sudden LPG squeeze. Shipments of liquefied petroleum gas, widely used for household cooking and commercial kitchens, have slowed as geopolitical tensions in the region disrupt trade routes and supply flows. In response, authorities have begun prioritising domestic consumption over commercial use in order to protect household supplies.
Prices have already moved upward. A 19-kg commercial LPG cylinder has risen by about ₹115, while the price of a domestic 14.2-kg refill has increased by roughly ₹60 since March 7.
Bengaluru restaurants warn of shutdown
The impact is already being felt in several cities. In Bengaluru, the Bangalore Hotels Association, which represents hundreds of restaurants and eateries across the city, announced on March 9 that many establishments could be forced to stop kitchen operations starting tomorrow (March 10) because commercial LPG supplies have been disrupted.
The association warned that the shutdown could affect thousands of daily-wage workers as well as students, senior citizens and hospital patients who depend on affordable meals from local eateries.
“Oil companies had assured us that there would be no disruption in gas supply for at least 70 days. The sudden stoppage is a devastating blow to the hotel industry,” the association said in a statement.
Restrictions spreading across states
Across the country, authorities and distributors have introduced emergency measures to conserve supplies.
In Punjab, oil marketing companies halted dispatches of non-domestic LPG cylinders on March 8. The suspension includes 19-kg commercial cylinders and larger industrial packs. Distributors have also been instructed to reject refill bookings made before a mandatory 25-day waiting period.
Maharashtra has seen significant reductions in commercial LPG volumes at plants in Nagpur, Pune and Mumbai. Supply cuts have already hit restaurants and cloud kitchens, while gas crematoriums in Pune have been temporarily shut. Reports suggested that as many as 9,000 restaurants and bars could be forced to suspend operations if shortages continue.
In Andhra Pradesh, distributors have been directed to suspend fresh commercial allocations in several districts while prioritising household demand. Thousands of hotels and small eateries say their LPG supplies have already fallen sharply.
Telangana has frozen commercial LPG dispatches in parts of the state, including Hyderabad. Existing inventories are being rationed carefully until import flows stabilise.
Tamil Nadu has also halted fresh commercial cylinder dispatches in Chennai and Coimbatore. Industry groups have urged authorities to consider partial rollbacks, warning of pressure on restaurants and food businesses.
Meanwhile, in Himachal Pradesh, consumers can now book a refill only 25 days after their previous cylinder delivery. The rule is enforced automatically through online and phone booking systems.
Kolkata has introduced similar controls. Indian Oil Corporation and Bharat Petroleum have imposed a 21-day lock-in period for domestic LPG refills after a sharp surge in bookings over recent days.