LPG Shortage in India After Strait of Hormuz Closure

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Middle East Crisis Sparks LPG Concerns, Government Urges Public Not to Panic

By Manu Vardhan Kannan

Published on March 12, 2026

The ongoing conflict in the Middle East and the closure of the Strait of Hormuz, one of the world’s key routes for oil and gas shipments, has started to affect energy supplies in India. The disruption in shipments has led to delays in the delivery of crude oil and LPG, creating a shortage of commercial LPG cylinders that are widely used by restaurants, hotels, and small businesses.

The shortage is being felt across several parts of the country and is directly impacting the hospitality sector, where commercial gas cylinders are essential for daily operations. From small tea stalls to large star hotels, many businesses are facing difficulty in securing cylinders due to the sudden rise in demand.

Reports indicate that the demand for commercial LPG cylinders has increased sharply. In Chennai, a single commercial cylinder was reportedly sold for as high as ₹5000 yesterday, reflecting the pressure on supply. The situation has also started to influence the prices of everyday items. For instance, a cup of tea that was earlier priced at ₹12 has now gone up to ₹15, while coffee prices have reached around ₹20 per cup in several places.

Fuel demand has also increased in the city. In Chennai, long queues were seen at many local petrol stations, with large numbers of vehicles waiting to refill fuel. Autos and other commercial vehicles were seen standing in long lines to refill petrol and CNG, reflecting the growing concern among the public. However, authorities have stated that petrol availability remains stable and have urged people not to panic, even as panic buying continues to be observed at some stations.

The Ministry of Petroleum and Natural Gas also urged citizens not to panic buy LPG cylinders. The government has assured that India has sufficient LPG supply and that cylinders will be delivered within a few days of booking.

The situation has also affected other sectors linked to exports and transportation. Mango pulp exports from Krishnagiri, which plays an important role in the beverage industry, have been impacted due to the disruption in shipping and transport. Nearly ₹2000 crore worth of mango pulp shipments are currently reported to be stagnant because of delays in movement.

Amid these developments, there has been some reassurance regarding shipping routes. Iran has assured India that Indian-flagged ships will be allowed to cross the Strait of Hormuz, helping maintain trade movement through the region.

Meanwhile, supply lines are gradually starting to stabilise. After the conflict began, the first shipment of crude oil from Saudi Arabia has already reached Mumbai Port, and more shipments are expected in the coming days. These arrivals are likely to ease the pressure on supply and help reduce the impact of the shortage in the near future.

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