Gas Cylinder Prices To Power Cut Threat: How PSU GAIL's Yelahanka Power Plant Halt Will Impact Bengaluru?

The coming days in Bengaluru are hinting at frequent power cuts or electricity supply constraint as Karnataka's only backup of natural gas, Yelahanka Power Station gets halted by Maharatna PSU giant GAIL (India). This would become a dual crisis as the city is already struggling with LPG cylinder crunch.

GAIL Yelahanka Gas Power Plant:

As per reports, the central government backed GAIL has likely shutdown Yelahanka gas-based power plant with effect from March 12, 2026, from 6 am onward. Further, reports have stated that could trigger mass electricity disruption.

How Important Is Bengaluru's Yelahanka Power Plant?

This is the first gas-based utility power plant of Karnataka Power Corporation (KPCL), which is among the lead electricity distributors in Karnataka. The plant replaced the old diesel generator-based power plant of 128 MW capacity, which has not been operating for some time due to environmental issues.

The Yelahanka power plant was to be put in place to address environmental concerns but also to improve the power supply in Karnataka and specifically Bengaluru city.

The Yelahanka power plant has a 370-megawatt capacity and is the only gas-based facility.

However, the latest Essential Commodities Act has pushed oil and gas producers to prioritize key petroleum product allocation to homes, transport, and essential sectors like healthcare over power plants.

Essential Commodities Act 2026:

The supply of natural gas to the following sectors shall be treated as priority allocation and shall be maintained subject to operational availability to hundred per cent. of their average past six-month average gas consumption: (a) Domestic Piped Natural Gas supply; (b) Compressed Natural Gas for transport; (c) LPG production including LPG shrinkage requirements; (d) Pipeline compressor fuel and other essential pipeline operational requirements, as per the main statement.

LPG Impact In Bengaluru:

While the shutdown of the Yelahanka power plant will not likely impact LPG supply in Bengaluru, on occasions of frequent power cut chances of its usage could be impacted.

19Kg LPG Prices In Bengaluru:

Currently, 19KG LPG price is hiked by Rs 144 to Rs 1,958 per cylinder for March 2026 month.

14.2Kg LPG Prices In Bengaluru:

Meanwhile, 14.2KG LPG prices witnessed its first hike in a year on March 7. Now, 14.2Kg LPG is priced at Rs 915.50 per cylinder in Bengaluru, which is up by Rs 60 from the previous month.

India's oil and gas market is vulnerable to the intense war in Middle East. India's majority of crude and LNG imports are through Strait of Hormuz which has been shut since Iran threatened to ablaze vessels for using the passage.

Hormuz is one of the largest chokepoints for global oil and gas supply. This maritime passage is crucial for India's oil, natural gas and energy market. Notably, India imports 62% of its total LPG through this passage in the Red Sea. Iran has warned to set vessels ablaze if they try to pass through Hormuz, which has left hundreds of ships stranded. Many Arab countries, which are key exporters of oil and gas, have announced output cuts.

Bengaluru Power Cut Due To Yelahanka Plant?

While there is no detailed information from official authorities on how the shutdown of Yelahanka will lead to scarcity in electricity. But many reports have stated that the state officials warned that stopping the gas could restrict the electricity supply until and unless the alternative sources can fully cover the shortfall. They are expecting minor disruption.

This plant has been running since December 2025 to meet Karnataka's electricity demand. However, since power generation is the lowest priority of essential commodities Act, the impact will most likely be felt.

Karnataka's Electricity Consumption:

As per Native Planet, Karnataka currently requires around 355 million units of electricity every day. The state meets this demand through a mix of thermal power plants, hydropower stations, renewable energy sources such as solar and wind, and electricity received from the central grid.

Bengaluru Power Cut:

Bangalore Electricity Supply Company Limited (BESCOM) which has taken over the responsibility from KPTCL for the distribution of electricity in 8 districts in Karnataka, had carried one power cut on March 12 due to scheduled maintenance work. The power outage was scheduled to be 6-hour long from 10 am and ended at 4pm.