No shortage yet, but Iran war puts Mumbai’s gas supply on edge

Auto-rickshaw and taxi unions said they are in touch with Mahanagar Gas Limited (MGL) and fuel pump operators to monitor the situation

Mumbai: Even as the war in West Asia has severely disrupted liquefied petroleum gas (LPG) supplies in the city, the coming week will be crucial in determining whether the supply of compressed natural gas (CNG) for vehicles and piped natural gas (PNG) to households will also be impacted.

Mumbai, India, March 7, 2026 – Domestic LPG prices have increased by ₹60 and commercial cylinder prices by ₹114.5, effective Saturday in Mumbai city. This adjustment follows rising energy costs due to the recent escalation of conflict between Iran and the United States. Mumbai, India, March 7, 2026. (Photo by Raju Shinde/HT Photo) (Raju Shinde)

Auto-rickshaw and taxi unions said they are in touch with Mahanagar Gas Limited (MGL) and fuel pump operators to monitor the situation. According to union leaders, for now, there is no immediate shortage of CNG, while petrol and diesel pumps in the city have stocks that can last 45-50 days.

“There are around 300,000 autorickshaws in Mumbai alone, and each requires around 2.5-3 kgs of CNG,” said Thampy Kurien, a union leader. “Immediately, there isn’t a shortage being seen or felt. We are monitoring the situation, and this will be a critical week. We are in touch with MGL as well, which supplies gas to autos and taxis.”

Autos and taxis have been queuing up at CNG pumps in anticipation of possible disruptions, although the supply has been smooth so far, union leaders said. However, as a measure to ration supply, pumps are not receiving their full allocation of gas, they added.

MGL supplies CNG to about 1.2 million private cars across its operational areas, including around 500,000 vehicles in Mumbai. “A large majority of the gas required for our CNG supply is domestically produced. In case gas supplies to MGL are curtailed due to issues involving LNG import, there could be some impact on supply to MGL’s industrial and commercial customers,” said an MGL spokesperson.

Industry experts and pump operators said there is no immediate reason for panic, as there is adequate fuel stock. “CNG supply has not been impacted, while the available stock for petrol and diesel is for a good 45-50 days,” said a petrol dealer, who requested anonymity.

Transporters said that although the war has not yet directly affected the supply chain, a prolonged disruption could eventually impact the availability of goods.

“The gradual impact would be on the quantity of goods being transported, which might come down as manufacturing of certain goods and products might see a drop,” said Bal Malkit Singh, a transporter and core member of All India Motor Transport Congress.

“What we understand is that if the production capacity of goods being supplied in a day is a certain number of tonnes or kilograms, this might come down for both perishable and non-perishable goods, which can impact prices. This is if the war continues for a longer period,” he added.

LPG supply

Early signs of the disruption are already visible. Pradeep Shetty, spokesperson for the Hotel and Restaurant Association of Western India, said the hospitality sector was already facing severe shortages of commercial LPG in several cities, including Mumbai, Pune, Aurangabad and Nagpur.

“If the situation does not improve within the next two days, nearly 50% of hotels and restaurants in Mumbai may be forced to temporarily shut operations depending on the stock of cylinders they currently have. Smaller and medium-sized eateries will be the first to be impacted, as they typically operate with limited reserves,” he said.

Shetty added that alternatives such as electric or induction-based cooking are not viable for most commercial kitchens. “Transitioning to such systems also involves significant cost and infrastructure changes. At present, the industry has no practical alternative and urgently requires restoration of uninterrupted commercial LPG supply to ensure that hotels, restaurants and food service establishments can continue operating without disruption,” he said.

The central government has invoked emergency powers to redirect LPG supplies from industrial users to households. An oil ministry notification on Tuesday barred refiners and petrochemical plants from using the fuel as a feedstock, while also ordering them to maximise LPG output.

India sources most of its LPG and two-thirds of its LNG from West Asia. Fuel shipments through the Strait of Hormuz, a key chokepoint, are all but halted, and India is now extending measures to protect the more than 300 million households that use LPG. Households accounted for roughly 86% of India’s LPG consumption in the 10 months through January, according to oil ministry data.

The central government raised LPG prices on Saturday for the first time in a year and extended the minimum interval between subsidised refills to 25 from 21 days to modulate demand.

With inputs from agencies