India is confronting a major LPG and gas shortage as tensions escalate in the Middle East, disrupting imports from the Gulf and the Strait of Hormuz, a key global oil route. The shortage is already affecting households, businesses, and essential services across the country.
Reports indicate that nearly 20% of Mumbai’s hotels and restaurants have temporarily shut down, while Bengaluru and Chennai hotel and restaurant associations warn of possible closures. Pune has seen partial shutdowns, and many five-star hotels and eateries nationwide face similar risks, according to the All India Hotels Association.
The disruption threatens food supply chains for hospitals, colleges, offices, and trains. Bengaluru officials warn that food reserves in the city may last only a week. In Pune, municipal authorities have temporarily closed gas and fire crematoriums.
The Ministry of Petroleum and Natural Gas has prioritized household LPG supplies over commercial use. To curb hoarding and black marketing, the booking window for a new cylinder has been increased from 21 to 25 days.
The government has invoked the Essential Commodities Act, allowing supply controls during crises. Piped natural gas for households and CNG for transport will largely remain unaffected, while industrial supplies are cut by 20%.
India relies on the Gulf for nearly 90% of its gas imports, making it highly vulnerable to Middle East conflicts. The Strait of Hormuz, carrying about 20% of global crude, has been closed since February 28. Oil prices spiked above $100 per barrel last week, with Brent crude reaching $120 on Monday before dipping below $90. Experts say the current supply disruption is 17 times greater than the impact seen during the Ukraine war. Neighboring countries such as Bangladesh and Pakistan are also experiencing shutdowns of universities, offices, and factories due to fuel shortages.
The crisis has already impacted domestic LPG pricing. On March 7, prices for a 14.2-kg non-subsidized cylinder rose by Rs 60 in Delhi (to Rs 913), while commercial 19-kg cylinders increased by about Rs 114–115 (to Rs 1,883). India meets over 60% of LPG demand and more than half of liquefied natural gas requirements through imports, primarily from Gulf nations.
On Thursday, March 12, 2026, Prime Minister Narendra Modi criticized individuals attempting to incite fear regarding the LPG situation in India, stating that they are not only revealing their true intentions to the public but also causing harm to the nation. He urged State governments to increase surveillance to prevent black-marketing and hoarding during these times, as he spoke at a summit in New Delhi.