Indian Oil Corporation boosts LPG production amid supply disruptions.
Domestic consumers and essential sectors to receive LPG priority.
Strait of Hormuz tensions threaten 62% of India’s LPG import supply.
Commercial LPG shortages risk restaurant shutdowns nationwide.
State-run oil and gas company Indian Oil Corporation (IOC) announced on Tuesday that steps have been taken to enhance of Liquefied Petroleum Gas (LPG) production as geopolitical disruptions have affected global fuel supply. It also noted that the availability of LPG will be prioritised for domestic consumers and essential non-domestic sectors such as hospitals and educational institutions.
"Requests from other non-domestic sectors will be reviewed by a committee of Executive Directors from Oil Marketing Companies and prioritised based on merit, necessity, and product availability," the company said.
2 March 2026
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Notably, for essential requirements one can reach out to the committee at indanecareho@indianoil.in, edlpg@bharatpetroleum.in and lpg.sbu.head@hpcl.in.
Earlier today, Prime Minister Narendra Modi also held high level meeting with Petroleum Minister Hardeep Singh Puri and External Affairs Minister S Jaishankar to address the shortage of LPG.
Iran has currently taken control over the Strait of Hormuz following the military actions by the US and Israel. This maritime passage is vital for India's energy security, as the country imports 62% of its total LPG requirements.
The strain is already visible. Household LPG cylinder prices in Delhi have risen to around ₹913 following a hike of ₹60 per 14.2-kg cylinder, with commercial cylinders up by roughly ₹115.
On Monday, the National Restaurant Association of India (NRAI) stated that any disruption to LPG cylinder supply will lead to a "catastrophic closure" of restaurants, in a letter to Puri.
Referring to an order from the Ministry of Petroleum and Natural Gas, which reportedly directs all public sector oil companies to ensure that LPG is supplied/marketed solely to domestic consumers, the NRAI stated that suppliers across the country “have indicated that the supply of commercial LPG cylinders to restaurants would therefore be stopped.”\
On March 5, the Centre asked refiners to maximise LPG production for domestic consumption.
