Business & Economics

India Imposes Emergency Curbs on Commercial LPG After Hormuz Blockade

Between 9-11 March 2026 New Delhi redirected all LPG output to state oil firms for household cylinders, froze petrochemical diversion, and lengthened refill booking gaps to 25 days, slashing restaurants’ gas deliveries nationwide.

By Tomás Rydell

Focusing Facts

  1. A 9 March Petroleum Ministry order compelled every refinery to maximise LPG and sell 100% of it only to IOCL, HPCL and BPCL for domestic use.
  2. The Strait of Hormuz has been shut since 1 March, choking >80 % of India’s LPG imports and prompting a ₹60 hike in domestic cylinder price on 7 March.
  3. New OTP/biometric verification and a 25-day minimum interval between household bookings were enforced under the Essential Commodities Act, 1955, to deter hoarding.

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  • Central government and bureaucratic officials
  • Regional opposition politicians
  • Hospitality industry and local business media
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