PM Modi meets oil minister amid LPG shortage concerns
What's the story
Prime Minister Narendra Modi is currently chairing a key meeting with External Affairs Minister S Jaishankar and Petroleum and Natural Gas Minister Hardeep Singh Puri to address the shortage of LPG triggered by the escalating conflict in the Middle East. The meeting comes after the government issued an order to oil refineries for higher LPG production and using the extra production for domestic use.
Act
India is one of world's largest LPG consumers
The central government has also invoked the Essential Commodities Act, 1955, to regulate the availability, supply and equitable distribution of petroleum and petroleum products and natural gas. Per available data, India consumed 31.3 million tons of LPG during FY2024-25, with only 12.8 million tons produced domestically. The majority of India's LPG requirements are met through imports, with 85-90% coming from countries like Saudi Arabia.
Imports
Iran warns it will blockade oil until attacks end
These imports pass through the Strait of Hormuz, which has been blocked by Iran. Iran has vowed not to allow even "one liter of oil" to leave the region if attacks by the United States and Israel continue. An Islamic Revolutionary Guard Corps (IRGC) spokesperson said, "We are the ones who will determine the end of the war."
Hotels
Hotel and restaurant industry faces closure threat
The hotel and restaurant industry in Bengaluru, Chennai, and Mumbai is already facing a crisis due to a shortage of commercial cooking gas cylinders. Household cooking gas prices have increased by ₹60, while commercial LPG cylinders have increased by ₹115. In Bengaluru, the Bangalore Hotels Association has warned that hotel and restaurant operations could be severely impacted from March 10.
Others
LPG distributors have stopped supplying cylinders
The hospitality sector in Mumbai is also reeling under an energy crisis, with around 20% of hotels and restaurants shutting down due to the shortage. Iconic eateries in Dadar, Andheri and Matunga have started scaling back their menus, dropping slow-cooked food items. Similarly, the Chennai Hotel Association said commercial LPG distributors have stopped supplying cylinders completely, describing the situation in Tamil Nadu as "critical."