Is India Facing a Commercial LPG Crisis? Restaurants Warn Of Widespread Shutdowns

An LPG shortage in Mumbai is threatening to severely disrupt the city’s hospitality sector. Vijay Shetty, President of the India Hotels and Restaurant Association, has warned that nearly 20–30% of restaurants have already shut operations, and up to 60–70% may be forced to close within the next two days if LPG supplies are not restored. Hotels and restaurants typically rely on 19-kg commercial LPG cylinders, consuming two to three cylinders daily, with most establishments maintaining only a two-to-three-day buffer stock. According to Shetty, supplies have been severely disrupted since Thursday, leaving many establishments without fuel to continue cooking operations. The industry has approached authorities including the Devendra Fadnavis government and Civil Supplies officials for urgent intervention. Concerns have also been raised over alleged black marketing of cylinders, with prices reportedly rising from around ₹1,840 to nearly ₹3,000. The worst-affected areas include South Mumbai and suburban stretches from Andheri to Dahisar. The restaurant industry says switching to alternative fuel sources such as electric or induction cooking is not immediately feasible due to equipment constraints. Stakeholders are now hoping for swift government action to stabilise LPG supplies and prevent widespread closures across Mumbai’s food and hospitality sector.