The development comes after several restaurant and hotel associations flagged LPG supply crunch, which may lead to several establishments halting operations
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The development comes after several restaurant and hotel associations said that their LPG supply situation was tight and if more stocks were not made available, several establishments would have to stop operations.
The three-member panel includes K Sailendra from Indian Oil Corporation (IOCL); TV Pandiyan from Bharat Petroleum Corporation (BPCL), and Dhruv Kapil from Hindustan Petroleum Corporation (HPCL).
“In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the Ministry has taken the step for higher LPG production and securing it for supplying to domestic customers. Along with ensuring supplies to all domestic customers, it has been decided to make supplies as per requirement to the essential non-domestic sectors like hospitals, educational institutions, etc,” IOCL said on X.
For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs has been constituted to review the representations and prioritise supply. In case of any requirement in other sectors, a submission can be made to the committee, it added.
“Since non-domestic LPG supply depends on the availability of imported products, the committee may not be able to address every grievance. Requests will be considered based on their merits, product availability and appropriate decisions will be made accordingly,” IOCL emphasised.
For households
LPG is among the hardest hit by the closure of the Strait of Hormuz as the world’s second-largest LPG importer procures up to 90 per cent of its supplies from West Asia, with most of them transiting the Strait.
India consumed more than 33 million tonnes (mt) in FY25, of which over 90 per cent was in households for cooking. It produced 12.79 mt and imported 20.67 mt during the same period.
Sources said that India’s LPG situation is comfortable with “no alarms right now”. However, with no indication of the closure of Strait of Hormuz ending soon, the government as a precaution is “prioritising” it for cooking in households.
India is prioritising LPG for cooking with measures such as increasing the minimum waiting period for booking a cylinder to 25 days from 15 and prioritising the commodity for households over commercial use.
Published on March 10, 2026