New Delhi: A sudden disruption in the supply of commercial LPG cylinders has begun to paralyse hotel and restaurant operations across India, with major cities such as Bengaluru and Mumbai among the worst affected. Industry groups warn that if the supply situation does not improve immediately, a large number of establishments could remain closed in the coming days, affecting both businesses and daily food services for the public.
Hospitality associations in Bengaluru reported that deliveries of commercial cooking gas cylinders stopped unexpectedly, leaving hotels and restaurants without the essential fuel required for food preparation. Many operators say they are unable to continue services without LPG, and several establishments have already suspended operations.
Industry representatives say the crisis has come as a shock, particularly because oil marketing companies had previously assured businesses that commercial LPG supply would remain uninterrupted for nearly 70 days. The sudden halt has left restaurant owners scrambling for alternatives while facing the prospect of financial losses and operational shutdowns.
Leaders from the city’s hotel association stated that businesses are reluctant to close but have no practical choice. Without access to cooking gas, kitchens cannot function, making it impossible to serve food or beverages to customers. The association has reached out to central government officials and members of parliament from the region, urging swift intervention to restore supplies.
The problem is not limited to Bengaluru. In Mumbai, the hospitality industry has already seen significant disruption, with nearly one-fifth of hotels and restaurants temporarily shutting their doors due to the shortage. Restaurant owners in the city say they are struggling to obtain commercial cylinders from distributors, many of whom have stopped supplying stock.
National-level industry organisations have also raised the alarm. Hospitality federations have written to the Union Petroleum and Natural Gas Ministry seeking urgent clarification on reports of restrictions affecting commercial LPG distribution. They have requested clear instructions to oil marketing companies to ensure that restaurants and hotels receive uninterrupted supplies.
Restaurant associations across the country say distributors are citing a government directive issued earlier in March as the reason for halting deliveries, although the exact scope of the order remains unclear. Industry bodies argue that the hospitality sector provides a crucial public service, supplying affordable meals to office workers, students and healthcare staff who rely on restaurants for daily food.
Meanwhile, the Union oil ministry has formed a committee to review the growing complaints regarding LPG supply to non-domestic sectors such as restaurants, hotels and other industries. The panel, comprising senior executives from oil marketing companies, will examine requests and recommend measures to manage the distribution of available stock.
The supply crunch is linked to disruptions in global energy routes following escalating tensions in the Middle East. The conflict has forced the closure of the Strait of Hormuz, a critical maritime passage through which the majority of India’s LPG imports normally pass. With shipments from key suppliers affected, the government has prioritised domestic cooking gas deliveries to households.
India consumes more than 31 million tonnes of LPG annually, with the bulk used in household kitchens. Only a small share goes to commercial establishments, but restaurants and hotels depend entirely on this supply to keep their kitchens running. Since the country imports a large portion of its LPG requirement, disruptions in international supply chains can quickly impact local availability.
Officials say India still maintains sufficient fuel reserves, but the limited supply currently available is being directed primarily toward domestic consumers. As authorities explore alternative import sources, industry representatives fear that restaurants and hotels may continue to face shortages in the short term.
With thousands of eateries at risk of shutting down and millions of customers relying on them for daily meals, hospitality leaders say immediate intervention is essential to prevent a wider disruption to food services across the country.
