West Asia conflict: Why LPG cylinders are running short for restaurants in Mumbai, Kolkata, Bengaluru?

India’s hospitality sector is starting to feel the impact of the ongoing conflict in West Asia, with several restaurants and hotels reporting a shortage of commercial LPG cylinders. The disruption has affected eateries in cities such as Mumbai, Kolkata and Bengaluru, forcing some establishments to scale down operations or temporarily shut kitchens due to difficulties in securing cooking gas.

The volatile geopolitical situation has shored up the prices of LPG cylinders. Last Saturday, the price of household cooking gas cylinders was increased by Rs 60, while commercial LPG cylinders were hiked by Rs 115, following supply disruptions across critical energy shipping routes.

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Commercial LPG cylinder shortage cripples restaurants, hotels: What you need to know

Why is there an LPG cylinder shortage for restaurants and hotels in some cities?

India is the world’s second-largest importer of LPG and consumed about 33.15 million metric tonnes of cooking gas last year. A large portion of the country’s LPG demand is met through imports, with more than 80 per cent of these volumes passing through the Strait of Hormuz, a key global energy shipping route that has been affected by disruptions amid the Iran-Israel-US conflict.

Which cities are currently facing the LPG cylinder shortage?

The shortage of commercial LPG cylinders is being reported in several cities, including Mumbai, Bengaluru, Kolkata and Chennai, along with some areas of Rajasthan. Restaurant owners in these regions say delays in commercial LPG deliveries are affecting daily kitchen operations, raising concerns about business continuity if the situation persists.

What reason has the government given for the LPG supply issue?

The government has said that domestic households are being prioritised for LPG supply amid the disruption. Oil marketing companies have reportedly slowed down the distribution of commercial LPG cylinders to ensure sufficient availability of cooking gas for residential consumers.

Authorities have also extended the minimum refill booking period for domestic LPG cylinders to 25 days to prevent hoarding and ensure fair distribution during the supply crunch.

How is the LPG shortage affecting restaurants and hotels?

The LPG shortage has begun to impact the hospitality sector in multiple ways. Several restaurants have reduced menu offerings or removed dishes that require long cooking times due to limited gas supply.

Industry bodies claim that around 20 per cent of restaurants in Mumbai have temporarily shut down, while hotels and eateries in cities like Bengaluru have warned that operations may be curtailed if supplies do not improve soon. Many businesses are also exploring alternative fuel options or reduced operating hours to cope with the shortage.

When is the LPG cylinder supply expected to return to normal?

The government has said it is working with refineries and oil marketing companies to increase LPG production and stabilise supplies. However, officials have not provided a clear timeline for normalisation. Authorities indicate that supply conditions are expected to improve once import flows stabilise and production increases, though the situation will largely depend on developments in global energy markets and shipping routes.

To maintain supplies, the government has invoked provisions of the Essential Commodities Act to ensure adequate LPG availability and to divert key hydrocarbon streams to the LPG pool to stabilise supplies, particularly for household consumption.