Iran war impact: Govt orders oil refineries to increase LPG production; sets up panel to review concerns of non-household users

/ 2 min read
Summary

Government has prioritised domestic LPG supply to households and introduced 25-day inter- booking period to avoid hoarding/black marketing.

Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use.
Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use. | Credits: Getty Images

Amid reports of commercial LPG cylinder supply disruptions leading to closure fear among restaurants and eateries in Bengaluru and Mumbai, the government has issued orders to oil refineries for higher LPG production and has constituted a committee to monitor the situation for the non-household segment, according to sources. 

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"For supply issues pertaining to availability of LPG cylinders for restaurants, mobility and several other sectors, the ministry of petroleum and natural gas has constituted a committee. The committee will review the requirements of these sectors and try to divert some volumes to the sectors," government sources said. 

Orders issued oil refineries to increase LPG production

Meanwhile, the ministry also said orders have been issued to the oil refineries to increase LPG production. 

"In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," the ministry said. 

"The ministry has prioritised domestic LPG supply to households and introduced 25-day inter- booking period to avoid hoarding/black marketing. Non-domestic supplies from imported LPG is being prioritised to essential non-domestic sectors such as hospitals and educational institutions," it said. 

"For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs have been constituted to review the representations for LPG supply to restaurants/hotels/other industries," the ministry said. 

In its statement,  Bangalore Hotels Association yesterday said in a press release that nearly 70% of hotels in Bengaluru are already facing difficulties operating due to irregular or halted supply of commercial cooking gas.

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It cited severe disruption in LPG availability linked to the ongoing conflict in West Asia.

The association said supply of commercial LPG cylinders — the primary cooking fuel used by restaurants and hotels — has been affected, leaving many establishments unable to run their kitchens normally. With the hospitality sector heavily dependent on daily cylinder deliveries, the disruption has already begun affecting operations across the city.

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The notice warned that if supply is not restored immediately, many establishments may not be able to serve food from around 7:30 am on today, effectively forcing them to halt operations until LPG deliveries resume.

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