LPG crisis ends? Hotels and restaurants in these cities get commercial cylinders

 

With the resumption of commercial gas cylinder supplies, which were halted as a precautionary measure due to the West Asia conflict, normalcy is gradually returning to businesses and community kitchens. People have welcomed the move as supplies to hotels, restaurants, and other commercial establishments resume.

On Sunday, commercial cylinder deliveries restarted in several states, including Punjab and Delhi, with officials stating that normal operations are expected within two to three days. The Petroleum Ministry had announced on Saturday that commercial cylinder supplies would resume across 29 states and union territories.


In Delhi, the average daily consumption of 19-kg commercial LPG cylinders is around 9,000. As per government directives, 20 per cent of this, or 1,800 cylinders, has been distributed so far, 57 per cent via IOCL, 26 per cent via BPCL, and 17 per cent via HPCL.

Arvind, an Indane gas agency operator in Sonipat, stated that the filling of commercial cylinders at the Tikri plant in Delhi has begun, with deliveries expected to reach all cities in the next two days. However, supplies had not yet resumed in industrial hubs like Faridabad, Cyber City Gurugram, and Palwal. In Patna, commercial cylinders are currently being supplied to hospitals and educational institutions, with full resumption expected in about a week.

Related video: Centre urges LPG users to shift to PNG while assuring uninterrupted fuel supply nationwide (The Times of India)

Statewise Updates:

  • Chhattisgarh: Out of 3.5 lakh commercial cylinder consumers, 3,722 cylinders were delivered by 2 pm on Sunday.
  • Rajasthan: People staged protests and blocked roads in several locations demanding gas; in Ajmer, a funeral procession of a gas cylinder was reportedly held.
  • Jaipur: Nearly 4,000 auto-rickshaws have halted operations since Saturday due to the shortage.
  • Uttarakhand and Himachal Pradesh: Cylinders are being supplied mainly to hospitals and educational institutions. Himachal, which consumes about 3,500 commercial cylinders daily, reported severe shortages for hotels and eateries.

Officials clarified that there is no shortage of domestic LPG. In Himachal Pradesh, 10,000 commercial cylinders are currently available, with the 20 per cent quota to be determined on Monday. Meanwhile, PNG is being supplied in Baddi and Una, providing relief to dhaba, hotel, and restaurant owners in Jammu, where commercial cylinder shortages have been reported. Full supply is expected to resume from Monday.

While the absolute crisis isn't over, there is significant movement toward stabilization. As of March 16, 2026, the Indian government has partially restored the distribution of commercial LPG cylinders to hotels and restaurants, though they are still operating under a quota system.

The "crisis" was primarily triggered by the conflict in West Asia, which disrupted shipping through the Strait of Hormuz.

Restoration and Quotas

The Ministry of Petroleum and Natural Gas has shifted from a near-total freeze to a priority-based allocation:


  • The 20% Rule: Oil Marketing Companies (IOCL, BPCL, HPCL) are now authorized to allocate approximately 20% of the average monthly requirement to the commercial sector.

  • Priority Ranking: * Priority 1: Hospitals and educational institutions (receiving up to 100% of their needs).

    • Priority 2: Government/PSU canteens.

    • Priority 3: Restaurants and small eateries (allocated the largest sectoral share of the available 20% quota).

    • Priority 4: Hotels and guest houses.


Major Cities Receiving Supplies

While distribution is resuming nationwide, these cities have seen the most active rollouts of the new priority policies:

  • New Delhi: A formal priority policy was issued on March 14, releasing about 1,800 cylinders daily for commercial use.

  • Mumbai & Pune: Supplies have partially resumed to prevent the predicted 50% shutdown of eateries.

  • Bengaluru & Chennai: These cities were hit hardest initially (some hotels had "only tea/coffee" menus); they are now receiving the 20% quota, though associations like the Bangalore Hotels Association still warn of high operational costs.

  • Kolkata & Hyderabad: Agencies have resumed limited deliveries to dhabas and hostels to protect students and migrant workers.

The "Relief Ships"

A major reason for this shift is the arrival of two Indian-flagged LPG carriers, Shivalik and Nanda Devi, which successfully crossed the Strait of Hormuz.

  • Shivalik docked at Mundra Port today (March 16) with roughly 46,000 MT of LPG.

  • Nanda Devi is expected to reach Kandla tomorrow morning (March 17).

Current Constraints

  • Price: Commercial 19-kg cylinders are significantly more expensive, costing roughly ₹1,884 in Delhi and over ₹2,000 in Chennai.

  • Lock-in Periods: To prevent hoarding, domestic consumers now face a 25-day gap (urban) or 45-day gap (rural) between refill bookings.


  • The "PNG Push": The government is mandating that any household with a Piped Natural Gas (PNG) connection must surrender their LPG cylinders to free up stock for others.

Would you like me to find the specific contact details for the LPG grievance cells or the latest black-market crackdown reports for a particular state?

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