Several hotel and restaurant associations across India have reported a shortage of commercial LPG cylinders. The problem emerged just days after the government increased the prices of both commercial and domestic LPG cylinders across the country.

Hotel groups in Bengaluru and Chennai said the disruption in supply could force restaurants to shut down if the situation does not improve soon. They warned that many eateries may suspend operations on Tuesday, March 10, if LPG supplies are not restored.

Global Oil Tensions Add Pressure

The LPG shortage comes at a time when global oil prices have risen sharply due to the ongoing conflict between Iran and the United States. The conflict has caused instability across the Middle East and raised concerns about energy supplies worldwide.

Experts say the situation has become more serious because Iran has targeted the Strait of Hormuz. This narrow waterway carries about one-fifth of the world’s oil shipments. Any disruption in this route can push energy prices higher and affect global fuel supplies.

Bengaluru and Chennai Restaurants Warn of Shutdown

Hotel associations in Bengaluru and Chennai said commercial LPG supply to restaurants has dropped sharply. The Bangalore Hotels Association issued a warning about possible closures.

"Since the gas supply has stopped, the hotels will be closed from tomorrow," the association said, according to PTI. The association added that the shutdown could affect many people who depend on restaurants for daily meals. This includes students, working professionals, and medical staff.

Similarly, the Chennai Hotels Association said restaurants in the city are also struggling with LPG supply shortages. “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,” the body said in a post on social media.

The association also warned that the shortage could disrupt banquet bookings and food services for IT parks and college hostels.

Restaurant Industry Body Warns of ‘Catastrophic Closure’

The National Restaurant Association of India also asked the government to intervene quickly. The organisation warned that restaurants across the country rely heavily on commercial LPG for cooking.

“The restaurant industry is predominantly dependent on commercial LPG for its operations. Any disruption therein will lead to a catastrophic closure of majority of restaurants,” the NRAI said.

Shortage Reported in Gurugram and Mumbai

Restaurants in other major cities have also started facing similar problems. Several eateries in Gurugram and Mumbai reported delays in commercial LPG deliveries. Rohit Arora, a restaurant manager in Gurugram, said suppliers have temporarily stopped deliveries.

“Our vendor informed us that commercial LPG deliveries have been paused temporarily. We have backup cylinders that can last about three days. If the situation continues, we may have to shift to residential cylinders or reduce menu items,” he said. Meanwhile, restaurants in areas such as Dadar, Andheri, and Matunga in Mumbai have already adjusted their operations.

Some eateries have removed slow-cooking dishes from their menus and shortened their working hours to save LPG.

Pune Temporarily Shuts Gas Crematoriums

Authorities in Pune have also taken emergency measures. The Pune Municipal Corporation temporarily shut down gas-based crematoriums in the city.

Officials said they took the step to prioritise propane and butane supplies for domestic LPG demand across the country.

Government Orders Refineries to Boost LPG Output

Amid the growing concerns, the Ministry of Petroleum and Natural Gas announced measures to stabilise LPG supply. The ministry directed oil refineries to increase LPG production and allocate the additional output for domestic use.

“The ministry has prioritised domestic LPG supply to households and introduced 25 day inter- booking period to avoid hoarding/black marketing,” the ministry said in a statement.

Officials also said that a special committee has been formed to examine requests from restaurants seeking LPG supplies.

LPG Prices Increased Last Week

The shortage comes shortly after the government increased LPG cylinder prices last week. The price of commercial LPG cylinders rose by ₹115, while domestic cylinders became ₹60 more expensive. Restaurant groups fear that if supply problems continue, many eateries across the country could face operational disruptions.