LPG Shortage Disrupts Cities Bengaluru Chennai Hotels May Shut Gurugram Worried

Hotel associations in several parts of India have reported a shortage of commercial LPG cylinders, just days after prices of both commercial and domestic gas cylinders were increased across the country.

Hotel associations in Bengaluru and Chennai have flagged major disruptions, warning that restaurants in the two cities may be forced to halt operations on Tuesday, March 10, if LPG supplies are not restored.

The development comes amid a rise in global oil prices linked to the ongoing conflict between Iran and the United States, which has heightened tensions across the Middle East. The situation has raised concerns of further increases in energy prices, particularly after Iran targeted the Strait of Hormuz, a key shipping route through which nearly a fifth of the world’s oil is transported.

Bengaluru, Chennai Hotels Warn Of Shutdown

The Chennai Hotels Association and the Bangalore Hotels Association said on Monday that commercial LPG supply to restaurants in both cities has been severely affected.

“Since the gas supply has stopped, the hotels will be closed from tomorrow,” the Bengaluru association said, according to news agency PTI.

The body also warned that the disruption could affect common people, students and medical professionals who depend on hotels for daily meals.

The Chennai hotels body issued a similar statement and sought Prime Minister Narendra Modi’s intervention in the matter.

“Commercial LPG distributors have completely stopped supplying cylinders, stating that they have no stock available. As a result, many restaurants are forced to shut down,” the association said in a post on X.

It also warned that banquet bookings taken by hotels could be affected, along with food supplies to IT parks and college hostels.

The National Restaurant Association of India (NRAI) also urged the government to intervene, warning of a potential “catastrophic closure” of restaurants.

“The restaurant industry is predominantly dependent on commercial LPG for its operations. Any disruption therein will lead to a catastrophic closure of majority of restaurants,” NRAI said, as reported earlier by HT.

Concerns Spread To Gurugram, Mumbai

Reports of commercial LPG shortages have also emerged from other cities, including Gurugram and Mumbai.

Some restaurant operators said they were exploring alternative arrangements as supply uncertainties continued.

“Our vendor informed us that commercial LPG deliveries have been paused temporarily. We have backup cylinders that can last about three days. If the situation continues, we may have to shift to residential cylinders or reduce menu items,” Rohit Arora, a restaurant manager in Gurugram, told HT.

According to an NDTV report, eateries in Mumbai’s Dadar, Andheri and Matunga areas have removed slow-cooking dishes from their menus and reduced operating hours to conserve commercial LPG.

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

Government Response

Amid concerns over rising oil prices and reports of LPG shortages affecting hotels, the government issued a statement on Monday directing oil refineries to increase LPG production and divert additional output for domestic use.

“The ministry has prioritised domestic LPG supply to households and introduced 25 day inter- booking period to avoid hoarding/black marketing,” the Ministry of Petroleum and Natural Gas said.

The ministry also said a committee has been formed to review requests related to LPG supply for restaurants.

The price of commercial LPG cylinders was increased by Rs 115 last week, while domestic cylinder prices were raised by Rs 60.