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LPG Shortage Hits Cities, Shuts Hotels and Restaurants Nationwide; Mumbai, Bengaluru Among Worst Affected

According to reports, restaurants and hotels in cities such as Mumbai, Bengaluru and Kolkata are facing difficulties in procuring commercial LPG cylinders, with industry associations reporting irregular supplies over the past few days

TFI Desk by TFI Desk
10 March 2026
in Economy, Trending
LPG Shortage Hits Cities, Shuts Hotels and Restaurants Nationwide; Mumbai, Bengaluru Among Worst Affected

People wait in a queue to receive LPG cylinders, in Ranchi, on March 7, 2026. (Image:PTI)

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The ongoing conflict in West Asia involving Iran, Israel and the United States is beginning to impact Indian kitchens and the hospitality sector, as disruptions in LPG supply linked to the crisis affect several major cities.

According to reports, restaurants and hotels in cities such as Mumbai, Bengaluru and Kolkata are facing difficulties in procuring commercial LPG cylinders, with industry associations reporting irregular supplies over the past few days.

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Hospitality bodies say the shortage is making it difficult for eateries to maintain regular operations, raising concerns about a widening gas supply crisis in the sector.

In response to the situation, the government has directed oil companies and refineries to increase LPG production in an effort to stabilise supplies and ease the pressure on restaurants and hotels.

Mumbai Restaurants Shut Amid LPG Supply Disruption

According to the Mumbai Hotels and Restaurants Association (AHRA), nearly 20 per cent of hotels in the city have already shut down temporarily due to the unavailability of cooking gas, reported News 18.

The body has warned that if the supply crisis continues, as many as 50 per cent of eateries in the city could be forced to shut within the next two days. Restaurant owners say that over the past two days, commercial LPG cylinders have become increasingly difficult to obtain through regular supply channels, severely affecting kitchen operations across the city.

Gulf Tensions Disrupt LPG Supply in Uttar Pradesh, Bengaluru and Chennai

Rising tensions in the Gulf region are now beginning to affect LPG supplies in parts of Uttar Pradesh, with delays reported in Lucknow.

According to India Today, the disruption has slowed the supply of commercial LPG cylinders in the city over the past two days. Hotels, restaurants and catering businesses are facing difficulties as gas deliveries are not arriving on time, affecting daily operations.

The waiting time for domestic LPG cylinders has also increased significantly. Earlier, households in Lucknow usually received cylinders within 24 hours of booking. However, deliveries are now taking between five and seven days in many cases.

The LPG supply issue is also being reported in other major cities, including Bengaluru and Chennai, raising concerns within the hospitality sector.

Hotel associations in these cities have warned that restaurants and hotels may be forced to shut down if commercial LPG cylinder supplies do not resume soon. Establishments in Bengaluru, in particular, say their operations could be severely affected as restaurants depend heavily on LPG for daily cooking activities.

The Bangalore Hotels Association on Monday said that the supply of commercial cooking gas cylinders has stopped unexpectedly, leaving hotels and restaurants without the fuel required to prepare food. In a statement, the association said the hospitality sector provides an essential service, particularly for common people, students, and medical professionals who depend on hotels and eateries for daily meals.

Govt Invokes Essential Commodities Act to Safeguard LPG Supply

The government has invoked the Essential Commodities Act to prevent any disruption in the supply of domestic cooking gas across the country.

In a directive issued late Monday, the Ministry of Petroleum and Natural Gas asked refineries and petrochemical units to step up the production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to boost LPG availability.

Under the order, refiners have been instructed to channel the entire output of C3 and C4 hydrocarbon streams towards LPG production. These streams include propane, butane, propylene and butenes, which serve as key raw materials in the manufacturing of LPG.

The government has also directed that these streams be supplied exclusively to the three state-run oil marketing companies, Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) which together manage the bulk of LPG distribution in the country.

Additionally, refineries and petrochemical complexes have been barred from diverting these hydrocarbon streams for petrochemical manufacturing or other downstream industrial uses.

The move is intended to prioritise LPG supply for households and ensure stable availability of cooking gas nationwide.

Govt Asks Refineries to Boost LPG Output Amid Cylinder Shortage

The government has also directed oil refineries to increase the production of liquefied petroleum gas (LPG) in an effort to stabilise supplies amid the ongoing LPG cylinder shortage.

As per reports, officials said the step is intended to prioritise the availability of domestic LPG and prevent further disruption to essential services. These include restaurants, hospitals and food supply chains, which rely heavily on a steady supply of cooking gas for daily operations.

Tags: BengaluruChennaiLiquefied Petroleum GasLPG Gas ShortageMumbaiSupply CrisisUttar Pradesh
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