LPG shortage disrupts restaurants and hotels across Indian metros, as per ground reports

LPG shortage disrupts restaurants and hotels across Indian metros, as per ground reports

LPG shortage disrupts restaurants and hotels across Indian metros, as per ground reports

Multiple hotel and restaurant associations and establishments across metros such as Mumbai, Bengaluru, and Chennai have stated that an acute shortage of commercial LPG cylinders is disrupting the sector.

Local media reports across the cities state the same. Mumbai’s F&B association, AHAR, stated that at least 20 per cent of the hotels and restaurants in the city had to shut down temporarily due to the recent development.

This is at the heels of the Union Ministry of Petroleum and Natural Gas issuing directives to oil refineries in India to lift their LPG production to increase the supply to the domestic market. "In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," read an official statement.

On Saturday, the war raging thousands of kilometres away in Iran arrived at the doorstep of Indian households through the cooking gas cylinder, when the price of a 14.2-kg domestic LPG cylinder was hiked by ₹60 across the country.

At the same time, the 19-kg commercial LPG cylinder used by hotels and restaurants went up by ₹114.50. This followed an earlier ₹28 increase on March 1, taking the total commercial LPG hike in 2026 to ₹302.50.

This seems to have triggered activity in the black market and hoarding, leading to a sudden shortage of commercial LPG cylinders, as per many ground reports.

"The ministry has prioritised domestic LPG supply to households and introduced a 25-day inter-booking period to avoid hoarding/black marketing. Non-domestic supplies from imported LPG are being prioritised to essential non-domestic sectors such as Hospitals and Educational institutions. For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs have been constituted to review the representations for LPG supply to restaurants/hotels/other industries," added the ministry.

Some of India’s LPG and LNG supply chains run through the Strait of Hormuz, which Iran closed in the recent escalations in conflict in the Middle East.

According to market watchers, if the military action continues, domestic cylinder prices in India could hit ₹1000, which means a proportional jump in commercial LPG prices. 

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