Commercial LPG shortage hits restaurants: Hotels in Mumbai, Chennai, Bengaluru warn kitchens may shut soon

A sharp shortage of commercial LPG cylinders is beginning to disrupt restaurant kitchens across major Indian cities, with industry bodies warning that food outlets in Mumbai and Bengaluru could be forced to shut within days if supplies are not restored.

The disruption comes as global fuel markets remain unsettled following the escalation of the West Asia conflict after the United States and Israel launched strikes on Iran.

Restaurant operators say deliveries of commercial cooking gas have slowed dramatically since Sunday, leaving many hotels and restaurants scrambling to secure supplies needed for daily operations.

Industry warns of imminent closures

Hospitality associations say the shortage is spreading quickly across the sector.

Vijay Shetty, president of the India Hotels and Restaurant Association, said the situation could soon lead to widespread shutdowns if supplies do not resume.

“All restaurants in Mumbai will be shut in the next two days if this shortage continues,” Shetty said, adding that the association has written to Union Petroleum Minister Hardeep Singh Puri and is also in touch with Maharashtra Civil Supplies Minister Chhagan Bhujbal.

“As of today, 10–20 percent of our members are facing problems. By tomorrow it will be 60 percent. By the day after tomorrow, it will be 100 percent impact on restaurants, forcing them to shut,” he said.

Restaurant owners say commercial LPG cylinders have largely disappeared from the supply chain since Sunday. At the same time, deliveries of domestic cylinders are also facing delays ranging from two to eight days after booking.

Annu Shetty, who runs Hotel Sagar in Mulund, said even when cylinders are available, prices have surged in the informal market.

“We are not finding commercial LPG cylinders. At a few places it is available but a Rs 1,750 cylinder is being sold for Rs 1,950,” she said.

Chennai hoteliers seek urgent intervention

Hotel associations in Tamil Nadu have also raised alarm over the supply disruption. In a representation highlighting the impact on the food industry, the Chennai hotel association urged authorities to restore commercial LPG supplies urgently. Here's what the association said in its statement:

“We request you to please represent our case on an urgent basis, as the food industry works on a 24 x 7 basis for many hospitals who require the food to be supplied on time besides IT Parks, students at college hostels, train and business travellers will all be affected, if the supply of commercial LPG is hindered.

There are also banquet bookings undertaken by many star hotels and restaurants which will also be affected.

The short supply of commercial LPG to the food industry will also hinder the dependence of the large public across Tamil Nadu.”

Bengaluru hotels also affected

The disruption has spread beyond Maharashtra and Tamil Nadu. In Karnataka, the Bangalore Hotels Association has warned that hotel operations may come to a halt from March 10 if commercial LPG supplies remain unavailable.

“Since the gas supply has stopped, the hotels will be closed from tomorrow,” the association said in a statement.

Panic buying adds to supply pressure

The shortage is also creating anxiety among households. Consumers with multiple domestic LPG connections have rushed to book refills, leading to long queues and extended delivery timelines at gas agencies.

Dealers say the scarcity could push some commercial users to illegally procure subsidised domestic cylinders, a practice they warn poses safety risks.

Although domestic 14.2-kg cylinders remain available, the waiting period for delivery has increased significantly.

Government prioritises household LPG supply

Government sources said oil marketing companies, Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum, have been directed to prioritise household LPG supply during the current disruption.

Officials said the waiting period for cylinder deliveries has been extended from 15 days to 25 days in an effort to discourage hoarding.

India is also exploring alternative international suppliers to stabilise LPG availability, including potential imports from Algeria, Australia, Canada and Norway.

Oil marketing companies have also been asked to increase LPG output and adjust refinery operations to manage rising demand.

Centre steps in to stabilise supply

Amid growing concerns from the hospitality sector, the Ministry of Petroleum and Natural Gas said it has initiated steps to stabilise LPG supply following disruptions linked to global geopolitical tensions.

“In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use,” the ministry said in a statement.

The government added that household LPG supply has been prioritised, and a 25-day gap between bookings has been introduced to prevent hoarding and black marketing.

Imported LPG originally meant for non-domestic use is currently being directed toward essential services such as hospitals and educational institutions.

Officials also said a committee comprising three executive directors from oil marketing companies has been formed to review requests from restaurants, hotels and other industries seeking commercial LPG supply.

(With inputs from Nagarjun Dwarkanath, Mustafa Shaikh, Piyush Mishra)