LPG Shortage Disrupts Restaurants and Small Businesses Across Indian Cities

A shortage of liquefied petroleum gas (LPG) is disrupting restaurants and small businesses in several Indian cities, as authorities prioritise household cooking gas supplies over commercial distribution. Hotel associations and industry groups warn that many eateries could be forced to temporarily close if deliveries of commercial cylinders are not restored soon.

Restaurant owners in cities including Bengaluru, Mumbai and Chennai say supplies of the widely used 19-kg commercial LPG cylinders have slowed significantly or stopped in recent days. The disruption has raised concerns across the hospitality sector, which relies heavily on the fuel to operate kitchen equipment.

The situation comes amid growing concerns about global energy shipments as tensions in the Middle East threaten supply routes through the Strait of Hormuz, a crucial corridor for LPG deliveries to India. The country imports about two-thirds of its LPG, much of it from the Middle East, making domestic supply sensitive to disruptions in international shipping.

In Mumbai, LPG distributors told local media that waiting times for domestic cylinder refills have stretched to around eight days. At the same time, supplies of commercial cylinders in some areas have reportedly been suspended. Industry representatives say restaurants may soon turn to the black market or domestic cylinders to keep their kitchens operating.

The Bangalore Hotels Association warned that many establishments could shut their doors starting March 10 if deliveries are not restored. “Without gas, food and refreshments will not be available at hotels starting tomorrow,” the association said in a statement, noting that most restaurants maintain only two to three days of LPG stock.

Similar concerns have been raised in Chennai, where the city’s hotel association said restaurants could run out of LPG within days if supplies remain disrupted. Reports of supply problems have also emerged in parts of Punjab, where gas distributors told local media that deliveries of commercial cylinders had stopped for the past two days and agencies were instructed not to place new orders.

Meanwhile, reports of panic buying have surfaced in parts of Delhi-NCR and Uttar Pradesh. Local media said long queues formed outside gas agencies as consumers rushed to secure refills. In some cases, LPG cylinders were reportedly being sold on the black market at nearly double the official price.

Prices have already risen in recent weeks. Earlier this month, the price of a domestic LPG cylinder increased by ₹60 to ₹913 in Delhi, while commercial cylinders used by restaurants rose by about ₹115, according to notifications issued by state-run oil companies.

Government officials maintain there is no nationwide shortage and say overall stocks remain adequate. Authorities have urged consumers to avoid hoarding and introduced stricter booking rules to control panic purchasing. Under the revised guidelines, customers can now book a new LPG refill 25 days after the previous delivery, compared with 21 days earlier.

For the hospitality sector, however, the immediate concern remains keeping kitchens open. Faisal Afreen, who runs the Dastarkhwan restaurant chain in Lucknow, said uncertainty around LPG supplies is troubling business owners.

“The situation looks bleak, and we are managing somehow for now,” Afreen said, adding that restaurant operators plan to meet LPG suppliers to find a possible solution.

Another restaurateur in Lucknow, M Alam, warned that if supplies are not restored quickly, many eateries may have little choice but to shut temporarily.

Leave a Reply