LPG Supply Disruptions Trigger Concerns of Restaurant Closures in Major Cities

New Delhi, March 10: Restaurants and hotels in several Indian cities are facing operational challenges following disruptions in the supply of commercial liquefied petroleum gas (LPG), raising concerns that many eateries may be forced to temporarily shut down if the situation continues.

Hotel associations in Bengaluru and Chennai have warned that the shortage of commercial LPG cylinders could severely affect restaurant operations. Industry bodies in both cities reported that supplies from distributors have either been reduced or halted, leaving many establishments without sufficient fuel for cooking.

According to representatives of local hotel associations, the situation may lead to widespread closures if normal supply is not restored quickly. They also pointed out that thousands of people—including students, office workers and healthcare professionals—depend on affordable meals from local restaurants every day.

The issue comes shortly after the government increased the prices of LPG cylinders across the country. Last week, the price of commercial cylinders rose by ₹115, while domestic LPG cylinders saw an increase of ₹60.

Hotel associations in Chennai have appealed to Prime Minister Narendra Modi to intervene and ensure immediate restoration of supply. In a public statement, the association said many restaurants have already been forced to suspend operations due to the lack of available cylinders. The disruption may also affect catering services for events, food supply to IT parks, and meals provided to student hostels.

The National Restaurant Association of India (NRAI) has also urged the government to address the issue, warning that restaurants heavily rely on commercial LPG and prolonged shortages could lead to widespread shutdowns across the sector.

Meanwhile, restaurants in Gurugram and Mumbai have also reported difficulties in securing commercial gas cylinders. Some establishments are considering temporary measures such as reducing menu items, limiting cooking hours, or using backup cylinders to continue operations.

Reports suggest that eateries in several Mumbai neighbourhoods have already removed dishes that require long cooking times in order to conserve fuel.

The shortage comes against the backdrop of rising global oil prices, linked partly to tensions in the Middle East involving Iran and the United States. Concerns have also been raised about potential disruptions around the Strait of Hormuz, a critical passage through which a significant portion of the world’s oil supply is transported.

Responding to the situation, the Ministry of Petroleum and Natural Gas stated that oil refineries have been directed to increase LPG production to meet domestic demand. The ministry also clarified that household LPG supply has been given priority and introduced a 25-day gap between bookings to prevent hoarding and black marketing.

Additionally, a committee has been set up to review requests from the restaurant industry regarding commercial LPG supply, as authorities work to stabilise availability across the country.