Several hotel associations across India have raised concerns over a shortage of commercial LPG cylinders, just days after prices of both commercial and domestic cylinders were increased across the country. Hospitality bodies in Bengaluru and Chennai have warned that restaurants may be forced to shut operations from Tuesday, March 10, if the supply of LPG is not restored.
The issue comes amid a rise in global oil prices linked to tensions between Iran and the United States, which have fueled instability across the Middle East. Concerns have intensified after threats to the Strait of Hormuz, a critical maritime corridor through which nearly one-fifth of the world’s oil supply is transported. Any disruption there could further push up energy prices globally.
Bengaluru, Chennai restaurants warn of shutdown
Hotel associations in Bengaluru and Chennai say the supply of commercial LPG cylinders has dropped sharply. According to representatives of the Bengaluru Hotels Association, many establishments may have no option but to close if the supply situation does not improve.
“Since the gas supply has stopped, hotels will have to shut down from tomorrow,” the association said, according to PTI. Industry representatives also warned that closures would affect a large number of people who depend on restaurants for daily meals, including students, office workers and healthcare staff.
The Chennai Hotels Association echoed similar concerns and even sought intervention from Narendra Modi. In a statement on social media, the association said commercial LPG distributors had stopped supplying cylinders, claiming that stocks were exhausted. The disruption could also impact banquet events already booked and food services provided to IT parks and college hostels.
Meanwhile, the National Restaurant Association of India (NRAI) urged the government to step in, warning that continued disruption in LPG supply could trigger widespread restaurant closures. The industry body said most restaurants rely heavily on commercial LPG for cooking, making uninterrupted supply essential for operations.
Concerns spread to Gurugram and Mumbai
The problem is not limited to southern cities. Restaurants in Gurugram and Mumbai have also reported shortages of commercial LPG.
Some restaurants have started exploring temporary alternatives. A restaurant manager in Gurugram said vendors had informed them that deliveries of commercial LPG were temporarily paused. The establishment currently has backup cylinders that may last a few days, but if the disruption continues, it may have to cut down menu items or switch to domestic cylinders.
According to reports, several eateries in Mumbai localities such as Dadar, Andheri and Matunga have already removed slow-cooking dishes from their menus and reduced operating hours to conserve available gas supplies.
In Pune, the Pune Municipal Corporation has temporarily shut down gas-based crematoriums, directing that available propane and butane be prioritised for domestic LPG supply across the country.
Government response
Amid rising concerns over LPG availability and surging global oil prices, the Ministry of Petroleum and Natural Gas has directed oil refineries to increase LPG production and channel additional output toward domestic supply.
The ministry said household LPG supply has been prioritised and a 25-day interval between cylinder bookings has been introduced to prevent hoarding and black marketing. It also announced the formation of a committee to review requests from restaurants and the hospitality sector regarding LPG supply.
