Gulf Tensions Raise LPG Supply Worries in Andhra Pradesh
Rising geopolitical tensions in the Gulf, following recent U.S. and Israeli strikes on Iran, are fuelling worries over liquefied petroleum gas (LPG) availability in Andhra Pradesh, though state officials have insisted that domestic households will not face an immediate shortage.
The state currently has an estimated 1.6 to 1.7 crore domestic LPG connections, including around 5 lakh under the PM Ujjwala Yojana and nearly one crore under the Deepam II scheme. Major oil marketing companies — Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL), and Indian Oil (IOCL) — each control roughly 30 to 34 per cent of the market.
HPCL officials in Visakhapatnam said that stocks would be sufficient for the next 25 to 30 days and advised consumers against panic buying. “Our priority is domestic users. Authorities have instructed us to ensure households do not face any inconvenience,” a senior HPCL manager said.
Commercial users, however, are reporting difficulties. Hotels and restaurants have faced delays in refills, with distributors urging them to rely on existing stocks. Hoteliers warned that prolonged shortages could disrupt operations.
On Tuesday, the Andhra Pradesh Star Hotels Association, led by president R.V. Swamy, met with Civil Supplies Director Nupur Ajay Kumar to raise concerns over a March 5 order from the Ministry of Petroleum, which prioritises propane and butane for domestic LPG cylinders.
Swamy said the association supported uninterrupted household supply but emphasised that commercial LPG is critical for hotels, resorts, restaurants, and catering services. “Any disruption could affect food preparation, guest services, and tourism in major cities such as Visakhapatnam, Vijayawada, and Tirupati,” he said.
Some establishments have already received alerts from distributors about potential supply constraints. Swamy added that extended disruptions could impact hotel kitchens, catering services, banquets, and conferences, and could have wider implications for the tourism-linked economy.
The association has called on the Civil Supplies Department to coordinate with LPG distributors to ensure adequate commercial LPG supply across the state.
Meanwhile, uncertainty persists. Visakhapatnam hosts a major underground LPG storage facility operated by HPCL, with a capacity of 60,000 tonnes. One shipment from Qatar has arrived and is currently being unloaded, but another vessel has been delayed due to disruptions near the Strait of Hormuz, raising concerns about future supplies.