LPG Supply Disruption Impacts Industries, Vizag Steel Plant Faces Production Risk

Concerns over LPG supply disruptions across India are beginning to affect industries, businesses and daily services, with reports indicating that the situation is now impacting major manufacturing operations as well. One of the most significant concerns has emerged at the Visakhapatnam Steel Plant, where declining LPG reserves are raising fears about possible disruptions in steel production.

Officials and trade union representatives have warned that the plant’s LPG stock is running low, creating operational pressure at one of India’s major steel manufacturing facilities. Although LPG is widely used as a cooking fuel in households, it also plays a critical role in several industrial processes, including steel manufacturing.

At the Visakhapatnam Steel Plant, LPG is used for bloom cutting operations in the Steel Melt Shop. This process is essential for cutting nearly 4,000 steel blooms every day, which helps maintain the continuous flow of production lines. The bloom cutting process directly supports the plant’s daily output of approximately 10,000 tonnes of finished steel.

Apart from bloom cutting, LPG is also required for various engineering operations inside the facility, including degassing processes and other technical procedures in the steel melt shop units. Any interruption in LPG supply could therefore affect multiple stages of production.

Trade union representatives say the plant consumes around 13 tonnes of LPG every day. While the facility has a total storage capacity of about 325 tonnes, current stock levels are estimated to last for only around ten days if supply disruptions continue.

Industry representatives have suggested creating a dedicated “green channel” for industrial LPG supply to ensure that critical manufacturing facilities continue to operate smoothly. They warn that if steel production stops entirely, restarting thermal processes in a large steel plant would be extremely expensive and time-consuming compared to maintaining reduced operations.

Meanwhile, the effects of LPG supply concerns are also being felt across other sectors of the economy. Restaurants, eateries and cloud kitchens in several cities have reported difficulty procuring commercial LPG cylinders, forcing some establishments to cut menu items or temporarily scale down operations.

The disruption is also affecting the gig economy. Delivery workers associated with platforms such as Zomato and Swiggy have reported a sharp drop in orders because many restaurants are operating at reduced capacity due to cooking gas shortages.

Corporate offices have also been impacted. Technology company HCLTech reportedly offered employees at its Chennai office the option to work from home after cafeteria vendors were unable to operate due to a shortage of LPG cylinders.

At railway stations, kitchens managed by Indian Railway Catering and Tourism Corporation have begun shifting to alternatives such as induction cooktops and microwave ovens to reduce dependence on LPG supplies.

Despite reports of disruptions in some areas, government sources have maintained that there is no nationwide LPG shortage. Officials say refinery output has been increased by around 10 percent to stabilise supplies and ensure that domestic consumers continue to receive priority access to cooking gas.

Authorities have also warned against panic buying, hoarding and the spread of misinformation about LPG availability. Law enforcement agencies in several states have stepped up monitoring of fuel distribution networks to prevent illegal storage or black marketing.

As global energy markets remain uncertain due to geopolitical tensions in West Asia, India is continuing to diversify its energy sourcing strategy. Officials say the government is working to ensure that fuel supplies remain stable and that essential industries and consumers do not face prolonged disruptions.