The hospitality sector has been hit by the sudden shortage of LPG supply amid the ongoing conflict in West Asia. Restaurant associations have warned that eateries could shut down within days if supplies are not restored.
The disruption has already begun affecting operations in Mumbai and Bengaluru, as hotels and restaurants struggle to secure cooking gas, which already costs around Rs. ₹1,950.
Industry representatives told PTI that most restaurants do not have storage capacity for more than two to three days of inventory, meaning prolonged supply disruptions could quickly impact operations.
Will Bengaluru restaurants close?
Restaurants in Bengaluru will remain open for now, despite rumors that eateries in the city would shut down starting Tuesday.
The Bengaluru Hotels Association president, Subramanya Holla, clarified that hotels are not planning closures unless commercial LPG supply stops completely. To cope with the uncertainty, the association has advised establishments to shorten menus and reduce operating hours, if necessary.
20% of Mumbai restaurants already shut
The situation in Mumbai is serious, restaurant associations said. Vijay Shetty, president of the India Hotels and Restaurant Association, said the shortage could soon paralyse the sector — forcing restaurants in the city to shut down within two days.
He said that around 20% of hotels in the city have shut down so far due to gas supply issues, and warned that if the issue does not normalize quickly, at least 50% of hotels in Mumbai could shut down over the next two days.
Apart from Mumbai, other parts of Maharashtra, including Pune and Nagpur, are also experiencing reduced availability of commercial LPG.
Jaipur – Domestic vs commercial LPG
Hospitality businesses in Jaipur, the capital of Rajasthan and a popular tourist hub, are on edge as government directives prioritizing domestic LPG supply may worsen shortages for commercial users.
According to media reports, restaurants and wedding catering services in Jaipur are already facing delays in cylinder bookings. In some areas, there is a waiting period of up to seven days.
Punjab suspends commercial cylinder dispatches
LPG marketing companies have suspended the dispatch of all non-domestic LPG cylinders, including the 19-kg commercial cylinders, in several parts of Punjab. Restaurant owners warned that such restrictions could quickly affect food businesses.
Officials defended the move, saying it was taken to protect domestic supplies amid uncertainty over import flows.
Hyderabad running on caution
Hyderabad’s hospitality sector has also reported a sharp decline in the availability of commercial LPG. Industry representatives said that dispatches have slowed significantly, forcing distributors to release existing stock cautiously.
Many small eateries are most at risk of facing difficulties if the situation continues.
Chennai seeks government intervention
Amid the country-wide commercial LPG shortage, restaurant associations in Chennai industry bodies have written to the central government seeking uninterrupted distribution of cylinders. They warned that restaurants and food services operate around the clock and depend heavily on regular deliveries, adding that the disruptions could severely affect the hospitality sector.
Oil ministry sets up panel
The oil ministry on Tuesday said it has constituted a committee to examine supply issues after a sudden shortage of commercial LPG cylinders, which is pushing the hospitality sector to shut down in days.
“For LPG supply to other non-domestic sectors, a committee of three Executive Directors (EDs) of Oil Marketing Companies (OMCs) have been constituted to review the representations for LPG supply to restaurants/hotels/other industries,” the ministry said in a post on X.
While maintaining that the country has adequate fuel stocks, the ministry in recent days directed refineries to maximize LPG output by curtailing petrochemical streams and extended the LPG refill booking cycle to 25 days from 21 days.
Non-domestic supplies from imported LPG are being prioritized to essential non-domestic sectors such as hospitals and educational institutions, it said.
India’s LPG shortage
India consumed some 31.3 million tonnes of LPG annually. As much as 87 per cent of this is in the domestic sector, i.e. household kitchens, and the rest in commercial establishments such as hotels and restaurants.
Of this total requirement, as much as 62 percent is met through imports. The US and Israel attack on Iran and Tehran’s retaliation have shut the Strait of Hormuz – the conduit through which India got 85-90 per cent of its LPG imports from countries like Saudi Arabia.
As alternate sources are being scouted, the limited supplies available meant the government prioritized supplies to the domestic sector, and in the process, the commercial establishments have suffered.
