The hospitality sector has been hit by a sudden shortage of LPG supplies amid the ongoing conflict in West Asia. Restaurant associations have warned that if supplies are not restored, restaurants could be closed within days.
The disruption has already started affecting traffic in Mumbai and Bengaluru as hotels and restaurants scramble to secure cooking gas that is already standing around ₹1950.
Industry officials told PTI that most restaurants do not have storage capacity for more than two to three days of supplies, which means prolonged supply disruptions could quickly affect operations.
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Will restaurants in Bengaluru close?
Restaurants in Bengaluru will remain open for now, despite rumors of restaurant closures in the city from Tuesday.
The president of Bengaluru Hotels Association, Subramanya Holla, clarified that the hotels do not plan to close unless the commercial supply of LPG is completely stopped. To cope with the uncertainty, the association advised establishments to cut menus and shorten operating hours if necessary.
20% of restaurants in Mumbai are already closed
The situation in Mumbai is serious, restaurant associations said. Vijay Shetty, president of the Hotel and Restaurant Association of India, said the shortage could soon paralyze the industry – forcing restaurants in the city to close within two days.
He said that about 20% of hotels in the city have so far closed due to gas supply problems and warned that if the problem is not normalized quickly, at least 50% of hotels in Mumbai could shut down in the next two days.
Apart from Mumbai, other parts of Maharashtra, including Pune and Nagpur, are also experiencing reduced availability of commercial LPG.
Read also | Half of Mumbai’s restaurants face closure this week due to LPG shortage – what we know
Jaipur – Domestic vs Commercial LPG
Hospitality businesses in Jaipur, Rajasthan’s capital and a popular tourist hub, are on edge as government guidelines favoring domestic LPG supply may worsen shortages for commercial users.
According to media reports, restaurants and wedding catering services in Jaipur are already facing delays in bottle bookings. In some areas, the waiting time is up to seven days.
Punjab suspends shipments of commercial bottles
LPG marketing companies in several parts of Punjab have suspended dispatch of all non-domestic LPG cylinders, including 19kg commercial cylinders. Restaurant owners warned that such restrictions could quickly affect food businesses.
Officials defended the move, saying it was taken to protect domestic supplies amid uncertainty over import flows.
Hyderabad are running cautiously
The hospitality industry in Hyderabad has also reported a sharp decline in the availability of commercial LPG. Industry officials said shipments have slowed significantly, forcing distributors to release existing inventory cautiously.
Many small restaurants are most at risk if the situation continues.
Read also | The Center favors domestic supply of LPG as the sharp rise in oil prices increases supply risks
Chennai calls for government intervention
Amid nationwide commercial shortage of LPG, restaurant associations in the industry bodies in Chennai have written to the central government requesting uninterrupted distribution of pressure cylinders. They warned that restaurants and food services operate around the clock and are heavily dependent on regular supplies, adding that outages could seriously affect the hospitality industry.
The Ministry of Petroleum is setting up a panel
The petroleum ministry on Tuesday said it has set up a committee to look into the supply issues following a sudden shortage of commercial LPG cylinders that is pushing the hospitality sector to shut down within days.
“For supply of LPG to other non-domestic sectors, a committee of three Executive Directors (EDs) of Oil Marketing Companies (OMCs) has been constituted to review the representation for supply of LPG to restaurants/hotels/other industries,” the ministry said in a post on X.
While the ministry maintained that the country has sufficient fuel reserves, in recent days it ordered refineries to maximize LPG production by curtailing petrochemical flows and extended the LPG refill booking cycle to 25 days from 21 days.
Non-domestic supply from imported LPG is prioritized to essential non-domestic sectors such as hospitals and educational institutions.
Indian shortage of LPG
India consumed around 31.3 million tonnes of LPG annually. A full 87 percent of this is in the domestic sector, i.e. home kitchens, and the rest in commercial establishments such as hotels and restaurants.
Of this total requirement, a full 62 percent is covered by imports. The US-Israel attack on Iran and Tehran’s retaliation closed the Strait of Hormuz, the channel through which India used to pass 85-90 percent of its LPG imports from countries like Saudi Arabia.
As alternative sources are sought, the limited supply available has meant that the government has prioritized supply to the domestic sector and commercial equipment has suffered in the process.
