India ordered tighter controls on natural and cooking gas Tuesday after Middle East war-related import disruptions, with restaurants warning of potential closures.
The South Asian nation, the world’s fourth-largest LNG buyer and second-largest buyer of liquefied petroleum gas (LPG), relies heavily on the Middle East for supplies.
“The ongoing conflict in the Middle East has resulted in the disruption of liquefied natural gas shipments through the Strait of Hormuz,” the Ministry of Petroleum said in an order. It said the rules would “ensure equitable distribution and continued availability for priority sectors.”
LNG supplies will now be prioritized for households, transport, and LPG production. Other sectors, including fertilizer plants and tea industries, will get 70–80 percent of their needs, “subject to operational availability.” Gas to petrochemical facilities and power plants may be partially or fully curtailed.
Several Indian industries, including ceramics and tile makers, have already reported cutbacks affecting production. Restaurants and hotels warned of disruptions after a separate ministry order Monday prioritized LPG for households.
“The restaurant industry is predominantly dependent on commercial LPG for its operations,” the National Restaurant Association of India said. “Any disruption therein will lead to a catastrophic closure of majority of restaurants.”
PC Rao, head of a hotel association in Bengaluru, said the “situation was dire.”
“Supply of gas has been hit and many of the smaller establishments only have one to two days of stock left,” he said. “The big ones probably have about 10 days worth remaining. Now, people will look to change or restrict their menus bearing in mind the situation.”