LPG Shortage Hits Bengaluru: Hotels and PGs Face Rationing Rules

Amid an LPG supply crunch driven by geopolitical tensions in the Middle East, the government has ordered oil refineries to boost LPG production for domestic use. Officials say an additional output will be allocated to households first, and a 25-day inter-booking interval has been introduced to curb hoarding and ensure wider access to cylinders. The Ministry of Petroleum and Natural Gas stressed that while domestic LPG supply is being prioritised, non-domestic supplies to restaurants, hotels and similar sectors will be reviewed by a committee of EDs from oil marketing companies to determine allocations.

The move comes as a wider energy security plan unfolds: a Natural Gas (Supply Regulation) Order was implemented to manage disruptions in LNG supplies after foreign suppliers invoked force majeure due to the Strait of Hormuz; authorities say the policy creates a supply hierarchy to safeguard households and essential services such as hospitals and educational institutions. In practice, this means that the hospitality industry may see delays or tighter allocations as the government navigates the competing demands of a business and homes.

In Bengaluru, operators of PGs and hotels have started adjusting to announcements and advisories, with some noting that meals for residents could be affected if non-domestic supply is constrained. The government’s announcement also highlighted a three-way mechanism: increase domestic LPG production, safeguard household supply, and route non-domestic demand through a prioritized process that could involve the hotels and restaurants sector only after critical needs are met. The overall aim, official briefings say, is to prevent a wider crisis and stabilize the market, even as refineries push to raise output and storage levels in anticipation of continued volatility in international energy markets. For everyday consumers, the priority remains clear: affordable, reliable LPG for cooking at home while the country navigates a delicate balance between domestic necessity and commercial demand.

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