LPG shortage: Indraprastha Gas issues notice slashing supply to all NCR restaurants by 20%

Delhi-NCR based gas distributor Indraprastha Gas Limited has issued a notice that it is slashing gas supply to all restaurants in the national capital region by 20%, effective immediately, in line with the Centre's order on supply to priority sectors.

Restaurants received the notice dated 9 March on email, with the cut effective from 6 am today, a restaurant proprietor told Mint requesting anonymity.

The government order invokes the Essential Commodities Act, 1955 (ECA), in order to control how gas cylinders are distributed and to stop hoarding or unfair prices.

“It is kindly requested that you may please like to make best endeavours to maintain the drawl within 80%,” it added.

The notice stated that the cut is aligned with the Centre's invocation of ECA, which has prioritised household LPG and select industrial customers over commercial users.

For example, Lawyers' Canteen at the Delhi High Court has temporarily suspended preparation and serving of main courses due to the ‘unavailability of LPG cylinders’ until further notice. “At the moment, we do not have any information regarding when the LPG supply will be restored. We will resume the preparation of the main course as soon as the gas supply becomes available,” the notice said.

Also based in Delhi, Manpreet Singh, honorary treasurer of the National Restaurant Association of India (NRAI) and owner of the restaurants Zen and Fujiya, said his outlets are working to reduce LPG consumption by “rationalising and prioritising dishes that require less gas”.

For owners like Singh, the focus has shifted from service quality to basic survival. “The first thing guests ask now is if we even have food to serve,” he said.

Notably, with LPG supplies now temporarily restricted, food delivery platforms such as Swiggy and Zomato could also see some impact as restaurants recalibrate services after taking stock of their existing supplies.

The government on Tuesday also moved to ration natural gas supplies, prioritising households receiving piped gas, vehicles running on compressed natural gas (CNG).

The booking interval has been extended from 21 to 25 days to curb hoarding.

The order establishes a four-tier priority system for gas allocation, with supplies to lower-priority sectors — including petrochemical plants, power stations, and oil refineries — curtailed to meet essential demand.

The oil ministry has constituted a three-member committee comprising OMC executive directors to review requests for LPG supply from restaurants, hotels and other non-domestic sectors.

Iran has restricted use of the strategic waterway amid attacks from the United States-Israel. The chokepoint handles about 20 mbpd of oil — around one-fifth of global consumption — and around one-fifth of global LNG trade, mainly from Qatar.

In a press conference today, the Oil Ministry assured that measures undertaken by the Centre have led to a 25% increase in LPG production in India. "India's crude supply remains secure. Our daily consumption is about 55 lakh barrels. Through diversified procurement, the volumes we have secured today exceed what would normally have arrived through the Strait of Hormuz during this period," Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum & Natural Gas, said at a joint press briefing.

Further, the ministry informed that crude oil is being sourced from non-Strait of Hormuz routes. The supplies secured through alternative routes are more than those that were disrupted, she said. “Our gas companies have procured LNG cargoes from new sources. Two LNG cargoes are on their way to India,” Sharma added.

In a statement on Wednesday, the ministry also assured households that there is “no need to panic” while making LPG bookings. “Normal delivery cycle for domestic household remains 2.5 days,” she said and urged people not to rush to book LPG cylinders. “As a temporary demand management measure, the minimum gap between LPG bookings has been increased from 21 days to 25 days,” she said.