A shortage of liquefied petroleum gas (LPG) is disrupting restaurants and small businesses across several Indian cities, as authorities prioritize household cooking gas over commercial supplies.
Hotel associations in Bengaluru, Mumbai, and Chennai have warned that many eateries may be forced to shut temporarily as deliveries of 19 kg commercial cylinders—commonly used by restaurants—have slowed or stopped in recent days.
The disruption comes amid rising tensions in the Middle East, raising concerns about LPG shipments passing through the Strait of Hormuz, a key corridor for supplies to India.
In Mumbai, LPG dealers told local media that waiting times for domestic cylinder refills have stretched to about eight days, while commercial cylinder supplies have been suspended in some areas. Industry representatives warn that restaurants may turn to the black market or use domestic cylinders to keep kitchens running.
In Bengaluru, the Bangalore Hotels Association cautioned that many establishments could shut from March 10 if supplies are not restored.
“Without gas, food and refreshments will not be available at hotels starting tomorrow,” the association said in an appeal to the government, noting that most establishments maintain only two to three days of LPG stock.
Similar concerns have emerged in Chennai, where the city’s hotel association said restaurants could run out of LPG within days. Supply disruptions have also been reported in parts of Punjab, where commercial cylinder deliveries have stopped for the past two days, and agencies have been advised not to place fresh orders.
Panic Buying
Reports of panic buying have surfaced in parts of Delhi-NCR and Uttar Pradesh, with long queues forming outside gas agencies and cylinders being sold on the black market at nearly double the official price.
India imports about two-thirds of its LPG, a significant portion sourced from the Middle East, making domestic supply vulnerable to disruptions in global shipping routes, according to industry estimates.
Prices are rising: Domestic LPG cylinder prices in Delhi were recently raised by Rs 60 to Rs 913, while commercial cylinders used by restaurants increased by about Rs 115, according to notifications from state-run oil companies.
Officials maintain that there is no nationwide shortage, urging consumers to avoid hoarding. The government has also tightened refill rules, now allowing a new LPG booking 25 days after delivery, compared with 21 days earlier.
Keeping Kitchens Running
For the hospitality sector, the immediate concern is keeping kitchens operational.
Faisal Afreen, owner of the Dastarkhwan restaurant chain in Lucknow, part of UNESCO’s Creative Cities Network, said uncertainty around LPG supplies is worrying.
“The situation looks bleak, and we are managing somehow for now,” Afreen told Khaleej Times. “We have called a meeting of LPG suppliers tomorrow (March 10) to see if we can work out some solution.”
Another Lucknow restaurateur, M. Alam, said many eateries may have no choice but to close temporarily if supplies are not restored soon.
“If the supply situation does not improve quickly, many restaurants will have no option but to close temporarily,” he said. (Agency)
