‘LPG supply stopped’: Bengaluru, Chennai hotels may shut; Gurugram restaurants raise alarm

Hotel associations across India have reported a shortage of commercial LPG cylinders, just days after prices of both commercial and domestic gas cylinders were raised nationwide. Associations in Bengaluru and Chennai warned that restaurants could be forced to shut operations from March 10 if supplies are not restored.

The disruption comes amid rising global oil prices linked to tensions between Iran and the United States, which have unsettled the Middle East. Concerns have also grown over Iran’s targeting of the Strait of Hormuz, a crucial shipping route through which nearly one-fifth of the world’s oil supply passes.

Restaurants in Bengaluru, Chennai warn of shutdown

The Chennai Hotels Association and the Bangalore Hotels Association said commercial LPG supply to eateries in both cities has been severely disrupted. The Bengaluru association said that hotels may be forced to shut down if supplies do not resume soon.

The group also warned that the disruption could affect daily food access for many people, including students and medical professionals who rely on restaurant meals.

The Chennai association issued a similar alert, urging intervention from Narendra Modi. In a social media post, the body said distributors had halted LPG deliveries, claiming they had run out of stock. As a result, many restaurants were already being forced to close temporarily.

The association also cautioned that existing banquet bookings could be affected, along with food supplies to IT parks and college hostels.

Industry body warns of ‘catastrophic closure’

The National Restaurant Association of India (NRAI) also appealed to the government to address the crisis quickly. The body warned that since most restaurants depend heavily on commercial LPG, a prolonged supply disruption could trigger widespread closures across the industry.

Shortages reported in other cities

The problem is not limited to southern cities. Restaurants in Gurugram and Mumbai have also reported limited supplies, with some establishments already exploring alternatives.

One restaurant manager in Gurugram said their vendor had temporarily paused deliveries. While they currently have backup cylinders for a few days, prolonged shortages could force them to switch to residential cylinders or cut down menu items.

In Mumbai, eateries in neighbourhoods such as Dadar, Andheri and Matunga have reportedly reduced slow-cooked dishes and shortened operating hours to conserve gas supplies.

Meanwhile, the Pune Municipal Corporation has temporarily shut down gas crematoriums in the city, directing that available propane and butane be prioritised for domestic LPG supply.

Government response

Amid the reports of shortages and rising oil prices, the Ministry of Petroleum and Natural Gas said oil refineries have been directed to increase LPG production and channel additional output toward domestic use.

The ministry added that household LPG supply has been prioritised and a 25-day interval between cylinder bookings has been introduced to prevent hoarding and black marketing. It also said a committee has been formed to review representations regarding LPG supply for restaurants.

The developments come after LPG prices were raised last week, with commercial cylinder rates increased by ₹115 and domestic cylinder prices by ₹60.