Fuel panic spreads: Queues at pumps, LPG outlets while govt denies shortage

People queued up at petrol stations and domestic LPG outlets amid panic buying across the country over a perceived paucity of fuel, even as the government told Parliament on Thursday that there was no shortage of petrol, diesel and kerosene due to the West Asia crisis and it was not the time for rumour-mongering.

The Uttarakhand government decided to provide commercial gas cylinders to hospitals and educational institutions on priority and began preparations to provide wood for commercial use if needed.

Eateries and quick-service restaurant chains, which rely heavily on commercial LPG cylinders to run kitchen operations, fear that restrictions on fuel supply to them could disrupt operations and drive input cost inflation.

Several eateries across the country have been forced to trim their operations.

The Tamil Nadu Hotels Association said small and medium-sized restaurants in the southern state were badly hit, with many iconic establishments in Chennai forced to stop serving fuel-intensive dishes such as dosas and fried rice to conserve their dwindling gas stocks.

Speaking to PTI, a restaurant owner in Delhi said, "There is a shortage of cylinders. Even double the price, around Rs 1,500 to Rs 2,000, is not enough."

He added that his eatery requires at least three cylinders every day.

In West Bengal, officials said the "shortage" of cooking gas cylinders had begun to affect midday meals in schools across the state, forcing authorities to adopt alternative fuels such as firewood or serving limited food items to students.

The Assam police warned people of strict action against those spreading rumours about a shortage of LPG and other fuels, a day after the chief secretary asserted that local refineries can meet only about 30 per cent of the state's demand for the cooking fuel.

The government has formed a media monitoring committee to track rumours, misinformation and misleading reports that may create panic among consumers.

The fear of fuel shortage has triggered panic buying and allegations of black marketing of gas cylinders.

In the national capital, police officials have been directed to prepare a list of gas agencies in their jurisdictions and deploy personnel to maintain law and order in view of the ongoing problem of LPG supply in the city.

"The sole motive is to maintain law and order and avoid any kind of black marketing. We want to ensure that people receive LPG cylinders through the proper distribution system," an officer said.

In Kolkata, police launched a crackdown on alleged black marketing of LPG cylinders, a day after Chief Minister Mamata Banerjee directed the authorities to ensure strict monitoring to prevent such pilferage.

The rush has also overwhelmed the booking systems of oil marketing companies, with distributors reporting repeated server crashes due to the surge in refill requests.

In West Bengal, the average daily bookings for Indane LPG cylinders have nearly doubled to around two lakh from about one lakh earlier, distributors said.

"This is panic buying," said Bijan Biswas, spokesperson for the Indane LPG Distributors' Association in Bengal.

"Many people are afraid they might not get another cylinder soon, and that has led to this crisis."

Catering and marriage service units have also been hit hard.

A spokesperson of a leading catering service provider in Puducherry told PTI that he was not taking orders for small functions as he had to fulfil the orders booked by big parties like marriages.

He expressed fear about not being able to meet the orders in the future as the available stock of commercial cylinders was shrinking.

In Delhi, a city known for its wedding feasts, characterised by giant cauldrons of biryani and endless live cooking stations, planners and caterers warn that ongoing supply disruptions and rising prices of commercial LPG cylinders might lead to an increase in wedding catering costs by approximately 10 to 20 per cent if the situation persists.

This warning comes as restaurants and commercial kitchens in various parts of the city report irregular LPG supplies, prompting vendors who organise large wedding events to monitor the situation closely ahead of upcoming ceremonies.

"Caterers for weddings and large events need substantial commercial cylinders for bulk cooking and live stations. Many vendors report that their stock lasts only two to four days, so we are already witnessing discussions about simpler menus, fewer live cooking options, and price hikes of around 10 to 15 per cent being passed on to clients," explained Mohsin Khan, a planner with Vivah Luxury Weddings.