LPG shortage hits several Indian cities; hotels warn of shutdowns

Several cities across India are facing a shortage of commercial LPG cylinders prompting warnings from hotel and restaurant associations about possible shutdowns Hospitality industry bodies in cities such as Mumbai Bengaluru and Chennai say irregular gas supplies over the past few days have disrupted kitchen operations forcing some eateries to cut menus reduce working hours and temporarily halt services The sector has urged the Centre to intervene and ensure uninterrupted LPG supply to prevent further disruption to food servicesThe shortage comes amid supply disruptions linked to escalating geopolitical tensions in the Middle East particularly the conflict involving Iran Israel and the United States The conflict has affected global energy shipping routes including the strategic Strait of Hormuz a key corridor for oil and gas suppliesRestaurants struggle as LPG supply becomes irregularIndustry bodies say restaurants are finding it increasingly difficult to procure commercial LPG cylinders which are essential for daily operations Many establishments have begun reducing menus and operating hours to conserve gasThe hospitality sector has urged the Centre to intervene and ensure uninterrupted distribution of commercial cooking gasBengaluru hotels warn of closuresIn Bengaluru the Bangalore Hotels Association warned that restaurant operations across the city could be severely affectedldquoSince the gas supply has stopped the hotels will be closed from tomorrowrdquo the association said in a statement issued on MondayThe association noted that the hotel industry provides essential services to a wide range of people including students medical professionals and daily commuters who depend on eateries for regular mealsIt also said oil companies had earlier assured an uninterrupted gas supply for 70 days making the sudden disruption a major setback for the hospitality sectorAssociation president PC Rao later told reporters that hotels would continue functioning ldquotill the last droprdquo of available gas stockChennai industry bodies raise alarmIn Chennai the hotel industry has also warned that the situation is becoming critical The cityrsquos hotel association has written to Prime Minister Narendra Modi seeking urgent interventionRespected SirCMOTamilnadu mkstalin Udhaystalin The situation has now become even more critical Commercial LPG distributors have completely stopped supplying cylinders stating that they have no stock available As a result many restaurants are forced to shut down pictwittercomcY6bYROmKYmdash Chennai Hotel Association ChennaiHotelAs1 March 9 2026Association president M Ravi said disruptions in commercial LPG supply could affect hospitals IT parks college hostels and travellers who depend on the food industryldquoThe food industry works on a 24x7 basis and any disruption in LPG supply will severely affect essential food servicesrdquo Ravi said adding that banquet bookings and largescale catering services could also be impactedMumbai restaurants cut menus reduce hoursMumbairsquos hospitality sector is also feeling the impact with industry estimates suggesting that nearly 20 per cent of hotels and restaurants have temporarily suspended operations due to the shortageAHAR respectfully brings to the attention of the Honrsquoble Minister for Petroleum and Natural Gas that many of our members from the hospitality industry are currently facing serious difficulties in procuring commercial gas cylindersDespite being a basic operational requirementhellip pictwittercomCEnx09DmCAmdash AHAR Indian Hotels and Restaurants Association AharAssociation March 9 2026Several wellknown eateries in areas such as Dadar Andheri and Matunga have begun shortening their menus dropping slowcooked dishes such as dal makhani and rava dosa that require longer cooking timesRestaurants have also reduced operating hours to preserve remaining LPG suppliesIndustry bodies seek government clarificationThe National Restaurant Association of India NRAI has also raised concerns stating that suppliers are unable to meet the demand for commercial LPG cylinders severely affecting restaurant operationsAs 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 thehellipmdash NRAI NRAI_India March 9 2026Pune gas crematoriums temporarily shutThe LPG shortage has also affected civic services in Pune The Pune Municipal Corporation has temporarily shut down gas crematoriums due to restrictions on the use of LPG components such as propane and butaneAccording to civic officials the Ministry of Petroleum and Natural Gas directed that available propane and butane be prioritised for domestic LPG supply across the countryElectric and woodfired crematoriums will continue operating to avoid inconvenience to residents officials saidGovernment steps to stabilise supplyThe Ministry of Petroleum and Natural Gas has directed oil refineries to increase LPG production and divert additional hydrocarbon streams to the domestic LPG poolIn light of current geopolitical disruptions to fuel supply and constraints on supply of LPG Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use The ministry has prioritised domestic LPG supply tohellipmdash Ministry of Petroleum and Natural Gas MoPNG PetroleumMin March 9 2026The government has also invoked the Essential Commodities Act to ensure uninterrupted supply of cooking gasAuthorities have introduced a 25day interbooking period for domestic LPG refills to prevent hoarding and black marketingNondomestic LPG supplies from imports are currently being prioritised for essential sectors such as hospitals and educational institutionsA committee comprising senior officials from oil marketing companies has also been formed to review requests from restaurants hotels and other industries seeking LPG suppliesGovernment says no cause for panicUnion Petroleum Minister Hardeep Singh Puri has said that Indiarsquos overall energy supply situation remains stable despite global disruptionsldquoEnergy imports into the country are in full flow from all nonHormuz routes The energy requirements of our citizens are being fully metrdquo Puri saidIn my excellent interaction with members of the media fraternity today we discussed how India is navigating the trilemma of energy availability affordability and sustainability even in the face of the current geopolitical challengesEnergy imports into the country are in fullhellip pictwittercomYoZvBAImdnmdash Hardeep Singh Puri HardeepSPuri March 7 2026However industry bodies warn that unless commercial LPG supplies are restored soon the hospitality sector could face widespread disruptions affecting millions of consumers who rely on restaurants for daily meals