India Rations Gas Supplies as Middle East War Disrupts Imports, Restaurants Warn of Closures
Mumbai, March 10 – India ordered tighter controls on natural gas and cooking gas supplies on Tuesday after import disruptions linked to the Middle East war affected shipments through the Strait of Hormuz, prompting warnings from restaurant groups that the curbs could force widespread closures.
The Ministry of Petroleum said the ongoing conflict in the Middle East had disrupted liquefied natural gas (LNG) shipments passing through the Strait of Hormuz, a key energy corridor for global trade. The government said the restrictions were aimed at ensuring equitable distribution of gas supplies and maintaining availability for priority sectors.
India, the world’s most populous country, is the fourth-largest buyer of LNG and the second-largest importer of liquefied petroleum gas (LPG), widely used as cooking fuel in households and commercial kitchens. Much of the country’s LNG and LPG imports originate from Middle Eastern producers.
Under the new directive, LNG supplies will be prioritised for households, the transport sector and LPG production. Other industries including fertiliser plants and tea producers will receive between 70% and 80% of their consumption requirements, subject to operational availability.
To offset the supply shortfall, the government said gas allocations to petrochemical facilities and power plants would be partially or fully curtailed.
Several Indian industries have already reported supply reductions. Ceramics and tile manufacturers said gas curbs could affect production as energy costs and availability tighten.
Restaurant and hospitality groups said a separate order issued on Monday prioritising LPG for domestic households had already begun affecting commercial users.
The National Restaurant Association of India said LPG suppliers across the country had signalled that deliveries to eateries could be halted following the order.
“The restaurant industry is predominantly dependent on commercial LPG for its operations,” the association said in a statement, adding that supply disruptions could trigger widespread closures.
PC Rao, head of a hotel industry association in Bengaluru, said the situation had become critical as stocks ran low across smaller establishments.
“Supply of gas has been hit and many of the smaller establishments only have one to two days of stock left,” Rao told AFP.
Larger restaurants and hotels may have up to about 10 days of reserves remaining, he said, adding that many businesses were considering limiting menus or adjusting operations to manage dwindling supplies.
