The shortage of LPG (LPG) is in discussion amid the war between America and Iran. The hotel and restaurant industry in Bengaluru, Chennai and Mumbai have raised the issue of shortage of gas cylinders due to supply disruption due to the ongoing war in the Middle East. Responding to this, the Central Government said that the supply of LPG in the country will not stop due to war. Indian Tej companies have been asked to increase its production.
The price of domestic LPG cylinders has increased by Rs 60 and the price of commercial LPG cylinders has increased by Rs 115 due to the Iran-Israel-US war and the resulting disruption in major transportation including the Strait of Hormuz. Now the question is, from where does India get LPG and how is it made?
From where does India get domestic gas LPG?
The country gets cooking gas in two ways. First, through its manufacturing in India and second, by importing it from other countries. India imports about 60 percent of LPG from other countries. 90 percent of imported cooking gas comes through the Strait of Hormuz.
India buys most of the cooking gas from Gulf countries. This mainly includes Saudi Arabia, Qatar and United Arab Emirates. 60 to 70 percent of the total import of cooking gas comes from these countries. Apart from this, gas is also imported from America, Algeria and Nigeria. This is the reason why India is dependent on the countries of the Middle East in terms of gas import.
Apart from imports, India also produces gas itself. LPG (Liquefied Petroleum Gas) in the country is mainly produced in crude oil refineries and natural gas processing plants. India is able to produce about 40-45% of its total requirement.
There are both government and private sector companies manufacturing LPG in the country. Government companies include Indian Oil Corporation, Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), Oil and Natural Gas Corporation (ONGC) and Oil India Limited. Some private sector companies also produce LPG. This includes Reliance Industries’ Jamnagar Refinery and Nyara Energy’s Vadinar (Gujarat) Refinery.
Video of long queue for LPG is going viral
Impact off Iran US war,
People are queuing up for. LPG gas agencies
Government should do a press conference and ask people not to worry about petrol Diesel & LPG pic.twitter.com/V8Iygr5f0e—
jaggirmRanbir
(@jaggirm) March 7, 2026
How is LPG made?
LPG is mainly a mixture of two gases – propane and butane. This gas is produced during refining of crude oil and processing of natural gas.
- Process of making LPG from crude oil: When crude oil reaches the refinery, it is heated in a distillation tower. Crude oil is heated to 350-400°C. When heated, different parts of the oil turn into steam and rise up. Distillation towers produce different products at different heights. LPG, being a light gas, gets separated first.
crude oil
- Process of making LPG from natural gas: Sometimes LPG also comes out from natural gas fields. Such is the case in many parts of the country, where natural gas is extracted from land or sea. In the processing plant the gas is kept cool and pressurized. Propane and butane are separated from it. This later becomes LPG.
How big a crisis?
On Monday, Pune Municipal Corporation temporarily closed the gas cremation grounds in the city till further orders. However, an official said that electric crematoriums and wood-fired crematoriums equipped with air pollution control systems will continue to function as before. Restaurant owners in Maharashtra and Karnataka have also complained that the supply of cooking gas has been disrupted due to the war and that if it continues they will be forced to close.
Vijay Shetty, president of India Hotels and Restaurants Association, said, “The gas shortage is spreading rapidly and may soon bring the sector to a standstill. If the shortage continues, Mumbai’s restaurants will be closed in the next two days.” He said that his associate organization had written a letter to Petroleum Minister Hardeep Singh Puri and warned that if the situation continues like this, all the restaurants will be forced to close in two days.
If we look at India’s LPG imports, we find that about 60 percent of the LPG is imported from other countries, but India is not completely dependent on imports. 40 to 45 percent of LPG is produced in the country. However, the government has made it clear that its manufacturing capacity is being increased so that people will not have to face shortage of gas on a large scale.
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