India is beginning to feel the ripple effects of escalating tensions in West Asia as supplies of liquefied petroleum gas (LPG) tighten across the country. The cooking fuel, relied upon by more than 33 crore households and widely used in restaurant kitchens, has become increasingly difficult to obtain in several cities. Consumers are reporting higher prices, delays in refill bookings and shortages of commercial cylinders.
The situation has raised concerns among businesses and households alike, particularly as global energy markets remain volatile amid the geopolitical crisis.
However, on Wednesday, the Oil Ministry said that the crude oil being sourced from non-Strait of Hormuz routes, supplies secured more than those that were disrupted. The ministry also said there is no need for panic buying.
Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum & Natural Gas, GoI, says, “Currently, LPG is being directed to the domestic sector. For non-domestic LPG, priority is being given to essential sectors such as hospitals and educational institutions. The committee is consulting with state authorities and industry bodies to finalise the plan to ensure that available LPG is distributed fairly and transparently.”
Rise In LPG Prices
On March 7, domestic LPG prices were increased by Rs 60 nationwide. In Delhi, the cost of a 14.2-kg non-subsidised cylinder rose to Rs 913. Commercial 19-kg cylinders, which are widely used by restaurants and food businesses, also became costlier by about Rs 114–115, with the Delhi price reaching Rs 1,883.
Restaurants Flag Supply Concerns
The tightening supply situation has drawn the attention of the restaurant industry. The National Restaurant Association of India has written to Petroleum and Natural Gas Minister Hardeep Singh Puri, cautioning that a recent directive related to LPG distribution could disrupt the availability of commercial cylinders for restaurants across the country.
Restaurants rely heavily on LPG for daily operations, and any disruption could increase operating costs or affect service capacity. Industry representatives say the issue could impact thousands of eateries that depend on steady supplies of cooking gas.
Heavy Import Dependence Adds Pressure
India’s vulnerability to such disruptions stems from its reliance on imported LPG. Roughly 60 per cent of the country’s LPG requirements are sourced from abroad, and a large share of these shipments, estimated at nearly 80 to 90 per cent, traditionally come from Middle Eastern suppliers including Qatar, the UAE, Saudi Arabia and Kuwait.
The current crisis has complicated logistics. A major portion of LPG shipments from the Gulf normally pass through the Strait of Hormuz, which has become increasingly uncertain as tensions escalate. Higher war-risk insurance premiums, rerouted shipping paths, and longer transit times are tightening supplies and pushing costs higher.
Household Demand Has Surged Over The Years
India’s LPG consumption has steadily expanded over the past decade, reflecting the growing reliance of households on cleaner cooking fuel. Demand rose from 21.61 million tonnes in 2016-17 to a peak of 31.32 million tonnes in FY25. Although consumption eased slightly to 30.86 million tonnes in FY26, overall usage has grown by nearly 43 per cent over the last ten years.
Price trends have also been volatile during this period. Using Delhi as a benchmark, the price of a domestic LPG cylinder climbed from Rs 658 in January 2016 to Rs 913 as of March 7, 2026. The highest level was recorded in March 2023, when the price reached Rs 1,103 before easing to Rs 803 in 2024 and rising again during 2025 and early 2026.
Global Oil Consumption Patterns
Energy demand patterns worldwide also play a role in shaping LPG prices and availability. The United States accounts for about 19.9 per cent of global refined petroleum consumption, followed by China at 15.9 per cent and India at 5.2 per cent.
Other major consumers include Russia with 3.8 per cent, Saudi Arabia at 3.5 per cent, Japan at 3.2 per cent and Brazil at 3.1 per cent. Together, the top ten consuming countries represent roughly 62 per cent of global petroleum product demand.
Transport fuels dominate global oil consumption. Gas and diesel account for about 31.9 per cent of total usage, while motor gasoline contributes 27.2 per cent. LPG and ethane make up around 10 per cent, with other products such as jet kerosene, naphtha and fuel oil forming smaller shares.
