At least two major steel producers said the shortage has started to affect certain downstream processes, although the disruption is not yet severe. One industry executive said natural gas or propane is commonly used in furnaces, meaning production cannot remain entirely insulated from supply constraints.
“Natural gas or propane is used in the furnace, so there is an impact. As of now, it’s not major,” said the executive.
Smaller steel mills, however, warn the situation could worsen if the shortage persists. Vivek Adukia, chairman of the West Bengal-based Steel Re-Rolling Mills Association of India, said that while LPG may not be a primary raw material, it remains essential for certain operational processes. “Induction furnace operators who manufacture billets require LPG for lancing. Without it, the production cycle cannot be completed,” said Adukia.
According to him, most mills currently have enough inventory to operate for the next few days. “If the situation continues, some mills may have to shut down,” he added.
Packaged food companies are also beginning to feel the strain.
Industry executives earlier this week told Business Standard that some manufacturers have had to cut production at plants in certain states as gas supplies remain constrained.
By contrast, the automotive sector has so far remained largely unaffected.
Industry insiders said vehicle manufacturers continue to operate normally while closely monitoring the evolving situation. Tata Motors, one of India’s largest passenger vehicle makers, has not experienced any disruption in production so far, sources said.
However, the company is closely tracking developments across both its own facilities and its supplier ecosystem. Sources added that, if required, mitigation measures, such as reprioritising the use of available resources across operations, could be activated.
“So far, there is no disruption in the production of vehicles. The key raw materials required for manufacturing such as metals and polymers are not affected. Polymers are largely derived from oil and refinery operations continue, so the basic supply chain for vehicle manufacturing remains intact,” said Anurag Singh, advisor at Primus Partners.
However, he added that the impact could be felt more by consumers than manufacturers. If compressed natural gas (CNG) availability tightens, vehicle owners, especially taxi operators, may have to temporarily switch to petrol, increasing their running costs.
Rohan Kanwar, vice president and sector head for corporate ratings at Icra, echoed a similar view, noting that automotive original equipment manufacturers (OEMs) are not expecting any immediate disruption to vehicle production. However, he said companies remain cautious about potential indirect effects. Higher fuel prices could affect freight availability and logistics costs, while petrochemical-linked input costs may also rise.
Some of these pressures could be partially offset through cost optimisation measures, he added.
Companies manufacturing tower masts or telecom towers that primarily run on LPG have switched to low-flame operations for galvanisation after LPG supplies stopped, said Manoj Kumar Singh, director general of the Digital Infrastructure Providers Association (DIPA), the industry body representing telecom infrastructure providers.
Although steps have been taken to prevent damage to plants and maintain zinc in molten form, the industry body cautioned that tower manufacturing units may have to shut down operations entirely if the LPG disruption persists. This, in turn, would disrupt the supply chain and ongoing and planned tower rollout activities by telecom companies.
Corporate offices monitor situation
The LPG shortage could also affect catering services that support large corporate campuses, particularly those serving IT companies and multinational firms.
HungerBox, a Bengaluru-based food technology platform that manages institutional cafeterias, said operations are currently running normally. The company serves 243 clients, manages 891 cafeterias and works with 886 food partners across 38 cities.
Sandipan Mitra, co-founder and chief executive officer of HungerBox, said the LPG shortage has not yet affected its services.
“As of now the LPG shortage has not impacted our services, and operations across corporate and institutional campuses continue to run normally,” Mitra said. “We are closely monitoring the situation, as most kitchens in India’s institutional food service sector still rely on commercial LPG.”
He added that the company has put multiple contingency measures in place in case the situation worsens. These include maintaining priority cylinder inventory buffers, exploring alternative fuel sources, rationalising menus to reduce cooking-intensive items, and adjusting service windows if required.
For critical facilities such as hospitals, HungerBox is maintaining dedicated backup fuel arrangements to ensure uninterrupted food services.
Three large corporate houses based in Delhi and Mumbai said they have not yet experienced any impact at their headquarters. One company executive said hybrid work arrangements introduced during the pandemic, such as two days of work-from-home each week, remain in place, but no additional changes have been made in response to the LPG supply concerns.
IRCTC asks catering units to use microwave, induction
Amid concerns over a possible LPG shortage, the Indian Railway Catering and Tourism Corporation has directed catering units at railway stations in its western zone to shift to microwave and induction plates and maintain stocks of ready-to-eat food items for passengers. In a communication issued on March 10, IRCTC asked operators of food plazas, refreshment rooms and ‘Jan Ahaars’ to switch to alternative arrangements to maintain seamless catering services for travelling passengers.
LPG shortage halts hot meals at Delhi High Court canteen
Food services at the lawyers’ canteen in the Delhi High Court have been partially suspended after the facility ran out of LPG (liquefied petroleum gas) cylinders used for cooking. Other courts in the city remain largely unaffected.
In a notice issued March 11, the canteen management informed lawyers and court staff that the shortage had made it impossible to prepare hot meals, forcing a temporary halt to main course items.
“Due to the unavailability of LPG gas cylinders at present, we regret that we are unable to prepare and serve the main course items in the Lawyers’ Canteen,” the notice said.
The management added there was no clarity on when supplies would resume. “Preparation of main course items will restart as soon as the supply becomes available,” it said.
Ready-to-serve items will continue to be offered, including sandwiches, salads and fruit chaat.
Elsewhere, court canteens appear insulated. A source at the Supreme Court said its food services were unaffected because the facility uses piped LPG. The National Green Tribunal (NGT) canteen is currently under construction, while other courts and tribunals in the city have not reported disruptions.