Surat: A widening geopolitical conflict involving the United States and Israel launching air strikes against Iran, followed by retaliatory strikes by Iran on gas production facilities in Qatar, Bahrain and Oman, has triggered a global energy crisis impacting India.

In response, the Government of India has invoked the Essential Services Maintenance Act (ESMA) to stabilise supply. Under this directive, LPG stocks produced and supplied by private players have been brought under the control of public sector oil companies. This has effectively halted LPG supplies from Reliance Industries’ Jamnagar refinery.

The disruption has caused widespread panic across South Gujarat. An estimated 2.5–3 lakh consumers in Surat and Tapi districts, and nearly 7.5 lakh consumers across Gujarat, have stopped receiving Reliance LPG cylinders.

Reliance Gas, which supplied nearly 90% of its LPG output within Gujarat in cylinder form, has seen its distribution network come to a standstill. The remaining 10% was supplied to Maharashtra, Rajasthan and Madhya Pradesh through nine bottling plants. In South Gujarat, the Panoli bottling plant has completely ceased cylinder dispatches, aggravating the crisis.

Vinay Mehta, one of the oldest LPG distributors in Surat since 1998, said that supplies from the Panoli plant stopped on March 9 after ESMA was enforced. “Our existing stock was exhausted by March 11,” he said.

He added that Reliance Gas has officially communicated to distributors that, citing force majeure, its agreements with distributors stand temporarily suspended for an indefinite period, relieving the company of supply obligations. The company indicated that supplies may resume only if the government allows it to reclaim control over gas distribution in the future.

Distributors have made representations to senior officials, including the Chief Secretary, gas supply authorities, and executives from Indian Oil Corporation and Reliance, requesting continuation of supply based on KYC verification. However, no resolution has been reached so far.

Sources said that government agencies have stationed themselves at the Jamnagar refinery to directly lift LPG supplies. Against the usual daily dispatch of around 4,000 metric tonnes, public sector companies are now lifting nearly 10,000 metric tonnes.

Massive livelihood impact

The enforcement of ESMA has also triggered large-scale unemployment in the private LPG distribution network. Around 300 distributors and thousands of workers in South Gujarat have been rendered jobless overnight.

“In Surat alone, we had around 40 dealers operating under us. Across Surat and Tapi, there are 125–150 distributors, while South Gujarat has nearly 300 distributors handling non-subsidised LPG,” Mehta said. “With operations shut, thousands of livelihoods are at risk.”

Earlier, the Panoli bottling plant dispatched 35,000–40,000 cylinders daily, which has now dropped to zero.

Rising prices, migrant distress

Mehta pointed out that Reliance and its distributors have been supplying non-subsidised LPG since 1998, effectively supporting the government’s energy distribution system.

Before the conflict, LPG supplied by public sector companies was priced at ₹858 per cylinder, which has now risen to ₹918. In comparison, Reliance LPG cylinders were priced at ₹1,383.

“Nearly 70% of our customers in South Gujarat are migrant workers. With LPG supply disrupted, reports suggest some have started leaving the region,” he said.

Currently, around 300 distribution outlets in South Gujarat remain shut, with customers making repeated visits amid uncertainty. Distributors also fear potential unrest, as frustration among consumers continues to rise. DeshGujarat