The center sets up a three-person team to solve the problem of “liquefied petroleum gas shortage”; domestic production increases by 10%

NEW DELHI: The Center has constituted a three-member committee to address the ongoing LPG shortage severely affecting the hotel industry, following concerns raised by the ongoing crisis in the Middle East.The new team will assess the scale of disruption, consult hotel and restaurant industry associations and reorganize supply distribution to meet genuine business needs, news agency ANI said, citing government sources.

The panel consists of executive directors of Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).The move comes after the Federation of Hotels and Restaurants Associations of India (FHRAI) wrote to the Petroleum and Natural Gas Minister: Hardeep Singh Purinoted “widespread disruptions in surface LPG supplies” and urged the government to intervene immediately.In response, the three-member committee was tasked to identify bottlenecks in commercial LPG supply and directly interact with hospitality industry stakeholders to address their grievances.Officials said supply priorities would be reprioritized as necessary to ensure continuity for important business sectors such as hotels and restaurants.In recent days, the Center has directed domestic LPG production to increase by 10% and is procuring more LPG and LNG from several international suppliers to stabilize the situation.India initially faced a challenging period following the Iran-Iraq conflict but has mitigated major supply risks thanks to its diversified oil procurement strategy, government sources said. Currently, about 70% of India’s crude oil imports come from outside the Strait of Hormuz, providing a strategic buffer against disruptions in the Middle East.The authorities added that Indian refineries are running at full capacity and the country is better positioned than many others to recover quickly once geopolitical tensions subside. Sources confirmed that no decision has been made on restricting refined oil exports.