STUDENT OPINION
The LPG Crisis in India

Sneha Ujjal Kundu - MPP 2027
Published on : Jun 25, 2026
There have been disruptions in supplies through conflict, and poor governance has worsened the situation. It is not LPG that is scarce but planning, affordability and belief in the state. The energy crisis begins at home, as testified by history. It's always an outside impact. It could be the oil shock in 1973, or it could be the tensions in West Asia today, but it is always a Global conflict that reveals a home weakness. They even bang on the kitchen door- sometimes it is a late gas supply, sometimes a hiked bill, sometimes it is the concern of what one will eat tomorrow.
The LPG crisis that is currently occurring gives us the true picture. It is easy to fault the war in the West Asian region, the Strait of Hormuz disturbance or the instability of the world energy market. All that is correct. But this is the whole truth here. What we do not want to see is that the crisis has just been revealed by the war. The issue on the ground is back home, in a policy framework that is strong in regular circumstances and weak in bad ones.
It is not as if the dependence of India on imported LPG was something new. Any nation that imports almost all the cooking gas that it uses must have been placed in a position to prepare for disruptions and not come up with a system that begins to tremble with the smallest change in the world order. But, that was just what had happened. The current tension has merely highlighted the fact that the LPG policy in the country has been more of a sudden growth than a sustainable progress.
It is at this point that the model fails. The LPG crisis is largely referred to as a shortage. The term is too simple and straightforward. In fact, it is not a product, not merely a lack of supply, that India, as a nation, is lacking but rather a lack of preparation. The poorest families are the first to be bitten when supplies are reduced, and the prices rise. A refill to a household that already spent its monthly cash is not a routine purchase. When it becomes not so affordable, trust also decreases. And where there is a decrease in trust, panic, anxiety, and fear soon follow.
That is why the argument of misreporting does not hold that well. Yes, media coverage may enhance fear. Small-scale events can appear to be a crisis that has entered the country as a whole due to sensationalist headlines in the news. It is easy to fault the media since it shifts the attention away on the part of governance and suggests that there is nothing wrong with the system and it is simply being overblown. An effective working system does not fail because of this sort of exaggeration. It is supposed to safeguard and reassure the people. But all is panic, followed by a reply, confidence, followed by action. This is not being proactive in governance. This is a reactive behaviour due to the fact that it is too late. The crisis can be observed to bring about delays and unequal distribution in different cities. An example is that a panic buying spurt in Kolkata increased demand to nearly the two times normal level in recent weeks, and the cylinders were being diverted to the black market rather than making it to the consumers. In certain parts of North India, Delhi, citizens were unable to purchase gas on the spot and had to wait a considerable period of time, as some gangs were storing around 600+ cylinders illegally. “These are not isolated disruptions—they are clear signs of a system under strain.”
Thus, this should not be regarded as something that just occurred in a war and will therefore pass. It should be regarded as a problem in policy terms. The crisis shows how an outside shock is translated into distress within the home when internal systems are weak. and how there is always a gap between announcing and actually carrying out reform. It is not the actual shortage of LPG that is present at that time, but that of the state. A government is unable to cushion its economy against all shocks. But it can help that shock from becoming a crisis. That is the ultimate trial of the government. And according to that test, we must say that the LPG system of the country has failed under this situation.
*The Kautilya School of Public Policy (KSPP) takes no institutional positions. The views and opinions expressed in this article are solely those of the author(s) and do not reflect the views or positions of KSPP.
Rudraram, Patancheru Mandal
Hyderabad, Telangana 502329
