Restaurants across India face LPG shortage as hotel bodies warn of closures in Bengaluru and Chennai after gas price hikes and global oil tensions.
Industry leaders say the shortage could disrupt food services for thousands of people who depend on restaurants for daily meals. (Photo: Social Media)
Restaurants and hotels across several Indian cities are facing a growing crisis due to a sudden shortage of commercial LPG cylinders. Industry associations have warned that eateries in major cities may be forced to shut down if supplies are not restored quickly.
The problem has surfaced just days after the government increased the prices of both commercial and domestic LPG cylinders. Hotel associations in cities like Bengaluru and Chennai say distributors have stopped delivering cylinders, leaving many restaurants struggling to continue operations.
Industry leaders say the shortage could disrupt food services for thousands of people who depend on restaurants for daily meals.
Hotel associations in southern India were among the first to raise the alarm over the LPG supply disruption. Restaurant owners in Bengaluru said their operations could come to a halt if the situation continues.
"Since the gas supply has stopped, the hotels will be closed from tomorrow," the association in Bengaluru said, as quoted by news agency PTI.
Respected Sir,@CMOTamilnadu @mkstalin @Udhaystalin
— Chennai Hotel Association (@ChennaiHotelAs1) March 9, 2026
The situation has now become even more critical. 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 👇 📣 pic.twitter.com/cY6bYROmKY
Restaurants in Chennai have also reported similar issues with distributors saying commercial LPG cylinders are currently unavailable. The Chennai Hotels Association warned that many eateries have already started facing operational challenges.
“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 body said in a tweet.
Hotel operators say the shortage could also impact catering services for IT parks, college hostels, and banquet events.
The National Restaurant Association of India (NRAI) has also raised serious concerns about the impact of the supply disruption on the hospitality sector. The organisation urged the government to intervene quickly to prevent large-scale closures.
“The restaurant industry is predominantly dependent on commercial LPG for its operations. Any disruption therein will lead to a catastrophic closure of the majority of restaurants,” NRAI said.
Industry representatives say most restaurants rely heavily on commercial LPG cylinders for cooking and food preparation, making a continuous supply critical for daily operations.
The problem is not limited to southern India. Restaurants in cities such as Gurugram and Mumbai have also reported difficulties in obtaining commercial LPG cylinders.
Some restaurant managers said their vendors had informed them about a temporary halt in deliveries. Many establishments are now relying on backup cylinders or adjusting their menus to manage the shortage.
“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, manager of a restaurant in Gurugram, told HT.
In parts of Mumbai, several eateries have already started reducing slow-cooking dishes and cutting operating hours to conserve fuel.
Authorities in Pune have also temporarily shut down gas crematoriums to ensure more propane and butane are available for domestic LPG supply.
Amid growing concerns, the government has asked oil refineries to increase LPG production and prioritise domestic supply across the country.
“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 in a statement.
Officials have also formed a committee to review requests from the restaurant industry regarding LPG supply.
The situation has also been influenced by rising global oil prices linked to the ongoing conflict between Iran and the United States. Tensions in the Middle East, especially near the Strait of Hormuz — a major global oil shipping route — have raised concerns about energy supply disruptions worldwide.
With LPG prices recently increased by ₹115 for commercial cylinders and ₹60 for domestic ones, restaurant owners fear the crisis could worsen if supply chains do not stabilise soon.
