Restaurants in Delhi said they have begun trimming their menus and limiting large group bookings on Friday even as a senior oil ministry official said commercial LPG cylinder distribution re-started in 29 states and Union Territories.
Across the country, raids were stepped up to nab those hoarding cooking gas cylinders to sell in the black market.
Restaurant owners in Delhi's Connaught Place said preparing food for large groups consumes more gas, hence several eateries have had to scale back operations and focus on regular diners.
Paramjeet Kaur, owner of Flavours of China, said the restaurant has reduced menu items to manage gas usage.
"We have had to make a few adjustments to manage the situation. For instance, we are currently not offering sizzlers as they require continuous and high flame usage. We have also trimmed our menu and are focusing only on basic dishes that can be prepared with limited gas consumption," she said.
Kaur said that the restaurant has temporarily stopped hosting large gatherings to conserve fuel. Some restaurants have switched to coal while others have raised prices to cope with the shortage.
Officials said there is no shortage of LPG for household use, even though commercial supplies have been affected in several places.
Sujata Sharma, joint secretary in the ministry of petroleum and natural gas, said panic booking has risen despite sufficient stock.
"There are no dry-out reports from any retail outlets. Our refineries are operating at full capacity, and sufficient petrol and diesel are available. Based on our requirements, we produce adequate petrol and diesel domestically and do not need to import," she said, reported PTI.
Commercial cylinder distribution has already started in about 29 states and Union Territories, she added, reported PTI.
Sharma said domestic LPG supply is being given priority as the government keeps a close watch on the situation following disruptions in energy flows from Gulf countries.
Raids and seizures across states
Police and civil supplies departments in several states have launched checks against hoarding and diversion of domestic cylinders for commercial use.
In Delhi, police have stepped up surveillance at LPG godowns and distribution points. Officers in plain clothes are holding meetings with distributors and warning of strict action against black marketing.
In Gujarat, in-charge DGP K.L.N Rao said police have been directed to take strict legal action against hoarders and black marketeers. In Karnataka, authorities seized 316 domestic LPG cylinders allegedly used for commercial purposes.
In Uttar Pradesh, raids were conducted at 1,483 locations and six people were arrested, while 24 FIRs were registered. Sikkim police have also directed district units to act against complaints of hoarding and overcharging by LPG distributors.
Small industries hit
The supply disruption has affected several small industries that depend on commercial LPG cylinders. In Agra, the petha industry has been hit, with some units shutting down due to the shortage.
Rajesh Agarwal, president of the Shaheed Bhagat Singh Petha Kutir Association, said production has been affected across the city.
"The production of petha has been badly affected. Some units have shut down completely, while others are managing operations with the limited cylinders they currently have. If the supply is not restored soon, the remaining units may also soon be forced to close," he said.
Traders in Bhopal have also warned that the hospitality sector could face closure if commercial LPG supplies are not restored soon.
LPG shipments reach Indian waters
Two Indian ships carrying LPG from the Gulf crossed the Strait of Hormuz early Saturday morning. LPG carriers Shivalik and Nanda Devi are heading to Mundra and Kandla ports in Gujarat with 92,700 tonnes of LPG.
Rajesh Kumar Sinha, special secretary in the ministry of shipping, said Shivalik is expected to reach Mundra on March 16 and Nanda Devi will dock at Kandla a day later.
Panic buying reported
Despite government assurances, panic buying has been reported in several places. In Kolkata and parts of South 24 Parganas and North 24 Parganas, long queues were seen outside LPG distribution centres from early morning.
Authorities said inspections have been increased to prevent hoarding and diversion of cylinders. Bihar transport minister Shrawon Kumar said rumours about LPG shortage were part of a political conspiracy.
"There is a well-thought-out political conspiracy behind the rumours of LPG cylinder shortage," he said, adding that black marketeers and rumour-mongers would face action.
Migrant workers leaving Kerala
In Kerala, where several restaurants and hotels have shut temporarily due to the LPG shortage, industry groups say migrant workers have started leaving for their home states.
G. Jayapal, state president of the Kerala Hotel and Restaurant Association, said workers from West Bengal and Assam are expected to return home before elections in their states.
Restaurant owners fear that if workers leave now, it may take time for them to return.
Governments urge calm
State governments have urged people not to panic and avoid panic booking of LPG cylinders. Maharashtra chief minister Devendra Fadnavis also said there is no shortage of LPG, petrol or diesel and accused the opposition of spreading panic.
Andhra Pradesh finance minister P. Keshav said both the central and state governments are monitoring the situation. “There is no need for people to panic about cooking gas as the central and state governments are taking measures to avoid inconvenience for them,” he said.
Officials said the focus remains on maintaining domestic LPG supply while commercial supply stabilises as new shipments arrive.



