LPG shortage: OMC panel to examine gas supply requests, but gives a reality check to commercial users

A panel of senior executives from state-run oil marketing companies, formed to prioritise supply of commercial LPG to non-domestic users, warned on Tuesday that not all requests may be accommodated as supplies depend heavily on imports hit by the Middle East conflict.

In a joint statement, Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd said a three-member committee has been set up to examine requests from restaurants, hotels and other industries seeking LPG supplies.

“Since non-domestic LPG supply depends on the availability of imported products, the committee may not be able to address every grievance,” the companies said.

“Requests will be considered based on their merits, product availability and appropriate decisions will be made accordingly,” the statement added.

The panel comprises K Sailendra of Indian Oil, T V Pandiyan of Bharat Petroleum and Dhruv Kapil of Hindustan Petroleum.

The move follows concerns raised by the hospitality sector over shortages of commercial LPG cylinders.

The restaurant associations have warned that eateries could shut down within days if supplies are not restored.

India consumes about 31.3 million tonnes of LPG annually, of which roughly 87% is used in household kitchens and the rest by commercial establishments such as hotels and restaurants.

Around 62% of the country’s LPG requirement is met through imports.

The US and Israel attack on Iran and Tehran’s retaliation has shut the Strait of Hormuz, through which India receives 85–90% of its LPG imports from countries such as Saudi Arabia.

With imports disrupted and alternate sources being explored, the government has prioritised domestic cooking gas supply, leading to tight availability for commercial users.

The oil ministry earlier said the committee will review representations for LPG supply to restaurants, hotels and other industries, while ensuring uninterrupted supplies to domestic consumers and essential sectors such as hospitals and educational institutions.

The disruption has already begun affecting operations in cities such as Mumbai and Bengaluru, where hotels and restaurants are struggling to secure cooking gas.