Gujarat Cuts Industrial Gas Supply by 50% Amid West Asia Conflict, Domestic LPG Unaffected

The Gujarat government has reduced natural gas allocation for industrial use as supply concerns emerge due to geopolitical tensions in West Asia, while assuring that cooking gas supply to households will continue without disruption. 

Industrial Gas Supply Curbed to Protect Domestic Needs 

Gujarat Energy Minister Rushikesh Patel said the state has cut gas supply to industries by 50% to prioritise domestic consumption. Additionally, fertiliser production and milk processing units will face around a 40% reduction in gas supply. 

Patel stated that the measure is intended to safeguard household LPG availability. He said, “The state government is constantly working to make sure that no household is left without a cylinder. We are in continuous contact with the central government regarding this.” 

The minister added that the government is implementing steps aligned with guidelines issued by the central government to prevent panic and ensure a steady supply of cooking gas. 

Commercial LPG Supply and Sector Concerns 

Responding to reports that restaurants and hotels may face restrictions on commercial LPG cylinders, Patel denied any such move. He said, “There is nothing like that,” and clarified that “as far as commercial gas cylinders are concerned, there is currently no cut or restriction on them.” 

Meanwhile, the oil ministry has set up a committee comprising three Executive Directors of Oil Marketing Companies (OMCs) to review supply requests from non-domestic users such as restaurants, hotels and industries after reports of shortages raised concerns in the hospitality sector. 

Impact of Global Conflict on LPG Supply 

India consumes about 31.3 million tonnes of LPG annually, of which 87% is used by households, while the rest is consumed by commercial establishments. Around 62% of India’s LPG demand is met through imports. 

The US and Israel’s attack on Iran and Tehran’s retaliation have disrupted the Strait of Hormuz, the route through which 85–90% of India’s LPG imports from countries such as Saudi Arabia normally pass. As authorities explore alternative sources, available supplies are being prioritised for domestic consumption. 

Earlier on March 6, an industry representative said around 100 ceramic manufacturing units in Morbi, Gujarat, had shut down due to gas supply disruptions linked to the ongoing West Asia conflict. 

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Conclusion 

Gujarat’s decision to cut industrial gas supply by 50% aims to prioritise LPG availability for households as supply disruptions linked to the West Asia conflict put pressure on energy imports. 

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