LPG Cylinder Shortage Threatens Hotel Operations in Major Cities
Hotels and restaurants in Bengaluru, Chennai, and Mumbai are facing a serious shortage of commercial LPG cylinders, raising concerns about possible disruptions in food services across the cities. Industry bodies have warned that many establishments may be forced to reduce operations or temporarily shut down if the supply situation does not improve soon.
The crisis comes amid global energy supply disruptions caused by the ongoing tensions and conflict involving Iran, Israel, and the United States, which have affected shipping routes in the Middle East. One of the key routes impacted is the strategic Strait of Hormuz, through which a large share of global oil and gas supplies pass.
Due to the disruption, the Indian government increased LPG prices last week. Household LPG cylinder prices were raised by ₹60, while commercial LPG cylinders saw an increase of ₹115, adding further pressure on the hospitality sector.
Bengaluru Hotels Warn of Possible Closures
The Bangalore Hotels Association said hotel and restaurant operations in the city could be severely affected from March 10 due to halted gas supplies.
In a statement, the association said many hotels may have to shut down if supplies do not resume soon. It emphasized that the hotel industry provides essential food services to students, medical professionals, and daily workers, many of whom rely on affordable meals from local restaurants.
Association president PC Rao said the industry would continue operating “till the last drop” of available gas in order to serve customers.
Chennai Hospitality Sector Raises Alarm
In Chennai, industry leaders have described the situation as “critical.” The city’s hotels association has written to Prime Minister Narendra Modi, requesting immediate action to ensure uninterrupted LPG supplies.
Association president M Ravi warned that food supply services for hospitals, IT parks, college hostels, and train passengers could be disrupted if the shortage continues.
The hospitality industry also noted that several banquet events and large bookings at star hotels could be affected due to limited LPG availability.
Mumbai Restaurants Cutting Menus and Hours
The situation in Mumbai is also worsening. According to industry estimates, nearly 20% of restaurants and hotels have already suspended operations due to the shortage.
Popular eateries in areas such as Dadar, Andheri, and Matunga have begun reducing menu items and cutting operating hours to conserve remaining gas supplies. Slow-cooked dishes like Dal Makhani and Rava Dosa have been temporarily removed from menus.
Industry bodies including the Federation of Hotel and Restaurant Associations of India (FHRAI) and the National Restaurant Association of India (NRAI) have urged the government to clarify supply policies and ensure uninterrupted distribution of commercial LPG cylinders.
FHRAI Secretary General Jaison Chacko said there is “widespread disruption at the ground level,” with several distributors reportedly withholding supplies due to confusion over government orders.
Government Steps In to Stabilize Supply
The Ministry of Petroleum and Natural Gas has responded by directing oil refineries to increase LPG production and divert additional resources to the domestic LPG pool.
Authorities have also introduced a 25-day inter-booking rule to prevent hoarding and black marketing. Non-domestic LPG supplies are being prioritized for essential sectors such as hospitals and educational institutions.
Union Petroleum Minister Hardeep Singh Puri reassured the public that India’s energy supply remains stable.
“Energy imports into the country are continuing from routes outside Hormuz. The energy needs of our citizens are being fully met,” he said.
Oil Prices Show Signs of Cooling
Global oil prices surged past $100 per barrel earlier this week amid geopolitical tensions, but saw a decline on Tuesday. Brent crude fell to about $92 per barrel, while West Texas Intermediate (WTI) dropped to around $88 per barrel, offering some relief to energy markets.
However, industry experts warn that if supply chain disruptions continue in the Middle East, LPG availability and prices in India could remain volatile in the coming weeks.