Strait of Hormuz Closure: Is India Facing Cooking Gas Crisis? Domestic LPG Production Up 25%, No Need for Panic Booking – Says Government | All the Details

Domestic LPG production up 25% as India faces import disruption from Strait of Hormuz war. Govt assures households of normal supply, appeals against panic booking.

By: Prakriti Parul
Last Updated: March 12, 2026 05:30:44 IST

India ramped domestic LPG production 25% invoking Essential Commodities Act prioritizing 33 crore households over commercial users. Strait of Hormuz shutdown slashed 55% cooking gas supply as 90% imports transit chokepoint. Petroleum Ministry assures normal two-and-a-half day delivery cycles despite panic booking hoarding from West Asia war misinformation.

Why 55% Cooking Gas Suddenly Vanished

India imports 60% LPG needs with 90% West Asia cargo sailing Hormuz – roughly 55% total consumption. Iran tanker strikes maritime blockade halted shipments creating instant shortage. Domestic output covered just 40% pre-war jumping 25% via refinery diversions propane butane streams. Maximum LPG extraction was mandated by the government at the expense of petrochemical output. More cargoes were obtained from far-off suppliers, but the supplies were not as large as the reserves of gasoline and diesel.

How Households Beat Commercial Users Now

Essential Commodities Act mandates domestic priority above hotels restaurants factories. Commercial entities scramble with shortages black-marketing reports emerge. Refill booking window stretched 21 to 25 days curbing hoarding artificial scarcity. Delivery authentication OTP expands covering 90% consumers blocking distributor diversions. Oil marketing companies clear backlogs coordinating field enforcement teams nationwide.

What Creates Panic Despite Government Assurances

Joint Secretary Sujata Sharma cites “misinformation” sparking rush bookings despite maintained delivery cycles. States UTs received Union Home Secretary directives cracking down hoarders. Reputable daily updates are provided by designated state spokespersons to stop rumors from spreading. While awaiting import normalization, a 25% domestic surge translates into a 10% increase in overall consumption. Refiners divert every drop of propane butane in order to increase output.

When Commercial Users Get Relief Allocation

MoPNG formed panel reviewing commercial LPG requests balancing household mandates. Hotels restaurants face immediate disruptions lacking alternative fuels. Enforcement targets distributor-level diversion ensuring household cylinders reach destinations. States activate police monitoring essential commodity flows. Global IEA 400 million barrel releases focus crude not LPG complicating distant sourcing logistics.

FAQs

Q: What percentage LPG normally imports India.

A: 60% total needs 90% West Asia via Hormuz equaling 55% consumption.

Q: How many households rely cooking gas.

A: Over 33 crore domestic connections nationwide.

Q: What changed booking refill timeline.

A: 21 days extended to 25 days preventing hoarding artificial scarcity.

Q: Who loses supply priority commercial users.

A: Hotels restaurants factories under Essential Commodities Act household mandate.

Disclaimer: This information is based on inputs from news agency reports. TSG does not independently confirm the information provided by the relevant sources. 

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