Commercial LPG supply halted: Bengaluru hotels announce shutdown from tomorrow

The Bangalore Hotels Association on March 9 announced that the supply of commercial LPG cylinders to hotels has been halted, triggering a major crisis for the city’s food service industry and forcing many establishments to shut operations from March 10.

Catch live coverage of West Asia conflict here

In a statement dated March 9, the association said the disruption could significantly affect common people, senior citizens, students and medical professionals who rely on hotels and eateries for their daily meals.

The association noted that oil companies had earlier assured the industry that there would be no disruption in LPG supply for up to 70 days. However, the sudden stoppage of commercial gas cylinder supply has come as a major blow to hotel operators across Bengaluru.

Hoteliers have appealed to the concerned Union ministers to immediately intervene and restore the supply of commercial LPG cylinders, warning that the situation could worsen if the issue is not resolved quickly.

Due to the shortage of gas, hotels across the city have decided to remain closed starting tomorrow, the association said, adding that the industry has little choice as kitchens cannot operate without regular LPG supply.

The disruption comes amid broader energy market turbulence linked to the escalating conflict in the Middle East following a US-Israeli attack on Iran, which has strained global fuel supply chains.

The National Restaurant Association of India in a post on X (formally twitter) wrote, "As per news articles, the Government has clarified that there is no ban on supply of commercial LPG cylinders for the restaurant industry. However, the ground situation is different, with suppliers expressing inability to supply the same. This is severely impacting the restaurant industry and in turn supply of food as an essential service for citizens. We request urgent clarification / intervention."

Meanwhile, the government has directed refineries to boost LPG production and prioritise domestic cooking gas consumers to ensure household supply remains uninterrupted.

On March 7, the price of domestic LPG cylinders was increased by ₹60 per cylinder, marking the second hike in less than a year after rates were raised by ₹50 in April last year.

The government has also increased the minimum waiting period for booking domestic LPG cylinders from 21 days to 25 days in a bid to curb hoarding and black marketing, government sources said on March 9.

According to officials, the move comes after authorities noticed unusual booking patterns among consumers. In several cases, households that earlier booked LPG cylinders roughly once every 55 days had begun placing orders within just 15 days, raising concerns over possible stockpiling and diversion.