Massive LPG shortage grips India amid Iran war disruptions

An acute nationwide LPG shortage has triggered chaos across India, with nearly 20 per cent of Mumbai's hotels shuttered, Vijayawada's eateries halting operations due to gas scarcity, and packaging units in Greater Noida completely halting production. Street vendors are paying premium prices for diverted Ujjwala cylinders amid the Iran war's supply disruptions.

Commercial 19-kg cylinders, normally sold at Rs 1,900, are fetching Rs 3,000 on the black market in Noida, Lucknow, Delhi, Bhubaneswar and Mumbai, where delivery delays are reported to be 20 per cent late on an average. Domestic Ujjwala cylinders are selling for Rs 1,500 against the official Rs 800 rate as panic buying intensifies.

The Centre has rationed households to one cylinder monthly, imposed 25-day booking lock-ins to curb hoarding, and invoked ESMA against profiteers. A three-member committee monitors complaints while refineries boost LPG output by 10 per cent.

The Hormuz blockade has slashed 80 per cent of LPG imports from Qatar, UAE and Saudi Arabia since late February. Costlier US cargoes under a 2.2 MTPA contract arrive via longer routes. Strategic reserves cover just 10 days as states prioritise LPG/CNG production through domestic gas rejig.

West Bengal Chief Minister Mamata Banerjee criticised the Centre sharply: "They should have ensured adequate LPG, oil and gas reserves before imposing restrictions. This policy vacuum indirectly helps black marketeers."

Delhi Chief Minister Arvind Kejriwal accused PM Modi of prioritising geopolitics: "Commercial LPG supplies halted except hospitals and schools. India pays the price for Modi bowing before Trump while restaurants and industries suffer."

The crisis has crippled hospitality and manufacturing. Mumbai Hotel and Restaurant Association reports 18-20 per cent establishments closed due to unavailable commercial gas. Vijayawada's 1,500 eateries face indefinite shutdowns. Greater Noida's packaging sector, serving FMCG giants, reports zero production capacity.

Mumbai's iconic dhobi ghats, the world's largest open-air laundries employing 5,000 workers, have suspended operations due to acute LPG shortage triggered by Iran war disruptions.

The 16 traditional ghats along the Mahim Creek, washing 4 lakh garments daily for hotels, hospitals and Bollywood, now stand idle as commercial cylinders remain unavailable.

"We've stopped washing since Monday; no gas means no boiling water for 12-hour starching process," said Bharat Ghodke, Mahalaxmi Dhobi Ghat president. Workers face daily wage losses of Rs 800; uniform services to Taj, Oberoi hotels disrupted. Black market gas at Rs 3,000 proves unaffordable for marginal operators serving Mumbai's Rs 1,500 crore laundry industry.

Wide impact

Aviation faces collateral damage with ATF prices surging 25 per cent, grounding IndiGo flights and affecting 15 crore annual passengers. Delhi-NCR CNG stations report kilometre-long queues.

The Oil Ministry maintains "no shortage exists" with production at full capacity, securing US, Algerian and Australian supplies while scouting Norway. Subsidised 14.2-kg Ujjwala cylinders remain Rs 613; non-subsidised Rs 913.

India, the world's second-largest LPG importer, depends 67 per cent on Gulf supplies via Hormuz. The 12-day Iran-US-Israel war has stalled tankers carrying half of LNG needs. PM Ujjwala Yojana serves 10 crore poor households, but commercial users (30 per cent demand) bear maximum impact.

Black market thrives in Kolkata (Rs 1,500/cylinder), NCR (Rs 3,000), and Mumbai suburbs. States like Punjab ration supplies amid free power subsidies straining budgets further.

The crisis follows US-Israeli strikes on Iranian nuclear sites and IRGC retaliation. Indian refiners secured US waivers for Russian oil while ONGC maximises domestic fields. PM Modi chaired an emergency energy security meeting Monday.