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Middle East conflict disrupts imports as government prioritises domestic LPG supply; hospitality sector seeks urgent intervention.
New Delhi/Bengaluru: Hotels and restaurants across major Indian cities are facing a severe operational crisis following disruptions in the supply of commercial LPG cylinders, with industry bodies warning that establishments may be forced to shut down if the situation persists.
In Bengaluru, the Bangalore Hotels Association said the supply of commercial cooking gas has suddenly stopped, leaving restaurants without fuel to prepare food. The association warned that many eateries could shut operations from March 10 if supplies are not restored.
Meanwhile, in Mumbai, the Association of Hotels and Restaurants (AHAR) said that around 20 per cent of hotels and restaurants have already closed due to disruptions in LPG supply.
Hospitality Sector Warns of Shutdown
Industry representatives said the hospitality sector provides an essential service to students, office workers, medical professionals, and others who rely on restaurants for daily meals. “Without gas, it is impossible to prepare food. If the supply is not restored immediately, food and refreshments will not be available in hotels,” said P.C. Rao, president of the Bangalore Hotels Association.
He said the association has already approached Union ministers and Members of Parliament from Bengaluru seeking urgent intervention. The Federation of Hotel and Restaurant Associations of India (FHRAI) has also written to Union Petroleum and Natural Gas Minister Hardeep Singh Puri, seeking clarification after distributors reportedly refused to supply commercial cylinders, citing a government order issued on March 5.
Similarly, the National Restaurant Association of India (NRAI) said suppliers have expressed their inability to meet the sector’s requirements, severely affecting restaurant operations.
Middle East Crisis Behind Supply Disruption
The supply crunch comes amid escalating tensions in the Middle East following US and Israeli strikes on Iran, which disrupted energy shipments through the strategically vital Strait of Hormuz.
India imports 85–90 per cent of its LPG supplies through this route, mainly from Gulf countries, including Saudi Arabia.
With supplies disrupted, the government has prioritised LPG distribution to domestic households, which account for about 87 per cent of India’s annual LPG consumption of 31.3 million tonnes.
As much as 62 per cent of India’s LPG demand is met through imports, making the country vulnerable to disruptions in global supply chains.
Government Sets Up Committee
The Union Petroleum Ministry has constituted a three-member committee of executive directors from oil marketing companies to review supply issues affecting hotels, restaurants and other commercial sectors.
While maintaining that the country has adequate fuel stocks, the government has also directed refineries to increase LPG production by diverting petrochemical streams and extended the LPG refill booking cycle to 25 days from 21 days.
Political Reaction
Siddaramaiah, Chief Minister of Karnataka, criticised the recent increase in LPG prices, noting that commercial cylinder rates were raised by ₹115 while domestic cylinder prices rose by ₹60. He said the price hike had already burdened businesses and consumers and urged the Centre to resolve the supply crisis urgently.
Industry leaders warn that unless supplies stabilise soon, the shortage could spread across other cities, severely affecting India’s hospitality sector and disrupting food services for millions of people
