Mint Explainer | Why Indian restaurants are raising the alarm over LPG supply

domestic LPG production, a move that could further tighten fuel availability for commercial users such as restaurants.Mint explains what the order says, why restaurants are concerned and how the industry is responding.The issue stems from an order issued by the ministry of petroleum and natural gas on 5 March directing oil refining companies to prioritize propane and butane streams for LPG production and supply it to the three public sector oil marketing companies (OMCs)—Indian Oil Corp. Ltd, Bharat Petroleum Corp.

Ltd and Hindustan Petroleum Corp. Ltd.The order also states that LPG procured by these companies should be supplied solely to domestic LPG consumers, a clause that triggered concern within the hospitality sector.

Industry bodies say the wording created confusion on the ground, with some distributors interpreting it as a restriction on commercial LPG cylinders used by restaurants.Restaurant associations have written to the government seeking urgent clarification to ensure uninterrupted supply.LPG is produced at oil refineries and gas processing plants and supplied to public sector OMCs, which distribute it across the country.More than 99% of domestic LPG in India is marketed through the three OMCs, which supply cylinders to households through distributors. Commercial users such as restaurants typically procure cylinders through the same distribution network under the commercial category.India imported about 21 million tonnes of LPG in FY25, making it one of the world’s largest LPG importers.