India Tightens Natural Gas and LPG Distribution Amid Middle East Supply Disruptions

Kathmandu. Following disruptions in fuel supply due to the ongoing conflict in the Middle East, the Indian government has tightened the distribution of natural gas and cooking gas. Following the government order, restaurants and hotels across the country have warned of widespread business closures due to the halt in gas supply.

India is the world's most populous country and is considered the fourth-largest buyer of Liquefied Natural Gas (LNG). It is also the second-largest importer of Liquefied Petroleum Gas (LPG) used for cooking, a significant portion of which comes from the Middle East.

An order issued by the Ministry of Petroleum on Tuesday mentioned that LNG shipments through the Strait of Hormuz have been disrupted due to the ongoing conflict in the Middle East. According to the ministry, the new arrangement aims to ensure equal distribution and continuous availability of gas to priority sectors.

The government has ordered that households, the transport sector, and LPG production receive the first priority for gas supply. Additionally, other sectors such as fertilizer factories and the tea industry will only receive about 70 to 80 percent of their requirements based on availability.

It has been stated that gas supplied to petrochemical industries and power generation centers will be fully or partially cut off to balance the supply. Some Indian industries have already warned that production could be affected due to the start of gas supply cuts. Many companies producing ceramics and tiles have stated that production could be impacted due to gas shortages.

Meanwhile, restaurant and hotel operators have become more concerned following another government order issued on Monday prioritizing LPG supply to households.

The National Restaurant Association of India indicated that LPG suppliers across the country might stop gas supply to restaurants following the government's decision. According to the association, since the restaurant industry primarily relies on commercial LPG for its operations, any disruption in supply risks widespread business closures.

"The restaurant industry is primarily dependent on commercial LPG for its operations," stated the press release issued by the association, "Any disruption to this could lead to devastating closures for many restaurants."

PC Rao, head of the Hotel Association in Bengaluru, known as the technology hub of South India, also stated that the situation is worrying. According to him, gas supply has already been affected, and many small restaurants and hotels have only one to two days' worth of gas reserves left.

"The situation is dire," Rao said, "Now many establishments are starting to think about reducing or changing their menus in light of the situation."