Building on March 5 directive to refineries, the government invoked the Essential Commodities Act on March 10, 2026, amid worsening LPG shortages from the Iran conflict and Strait of Hormuz disruptions. Commercial supplies have halted, severely impacting hotels, restaurants, and crematoriums across India, while prioritizing domestic use.
Tensions from the Iran conflict, including the effective closure of the Strait of Hormuz, have intensified LPG shortages in India, building on earlier disruptions covered previously. States like Maharashtra, Tamil Nadu, and Karnataka are hit hardest, with commercial supplies halted in cities including Mumbai, Bengaluru, Chennai, and Jaipur, forcing hotels and restaurants toward closure.
The Bengaluru Hotels Association warned of impacts on thousands relying on affordable meals within days. Iconic street foods like Mumbai's vada pav and Bengaluru's dosas are affected, while Pune's gas crematoriums have shut temporarily. Hyderabad's haleem production is largely spared due to wood-fired ovens, though Pista House's Mohammed Majeed noted gas use for caramelised onions in biryani and haleem. Restaurant staff meals are at risk, with stocks lasting only 2-3 days.
On March 10, 2026, following the March 5 Ministry of Petroleum order to maximize LPG production, the government invoked the Essential Commodities Act of 1955. This directs refineries and petrochemical units to maximize LPG output by diverting hydrocarbon streams, prioritizes natural gas at 100% of six-month averages for domestic piped gas, CNG, and LPG, while fertilizer plants get 70% and tea/manufacturing 80%. LPG is reserved for domestic consumers, with a 25-day inter-booking period to prevent hoarding. The ministry tweeted: 'In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use.' BJP MP Tejasvi Surya assured priority supplies for Karnataka, bolstering energy security amid uncertainties.
