The Centre has invoked the Essential Commodities Act to ensure regular supply of cooking gas after a commercial LPG shortage linked to global energy disruptions amid the Iran–Israel conflict has left hotels and restaurants across cities like Bengaluru, Chennai and Mumbai staring at a shutdown. In a major ripple effect due to the Iran-Israel-US war and the disruption it caused in key energy shipping routes in the Middle East, the hospitality sector in major cities like Bengaluru, Mumbai and Chennai is now facing a sudden shortage of commercial LPG cylinders, with restaurant associations warning that eateries could shut down within days if supplies are not restored.
The widening conflict in the Middle East disrupted fuel lifelines, including India’s LPG supplies, the government has prioritised domestic cooking gas supplies to households. This has led to a supply crunch for hotels and restaurants which use market priced commercial LPG.
This comes after last week, the government increased the price of LPG cylinders, raising household cooking gas rates by Rs 60 and commercial LPG cylinder prices by Rs 115, citing supply pressures.
Also Read: LPG Cylinder Booking Period Increased From 21 to 25 days, Govt Tells Companies To Boost Production
Bengaluru Hotels Warn of Closures
The Bangalore Hotels Association on Monday (March 9) said that Hotels across Bengaluru are set to remain closed from Tuesday (March 10) after a disruption in the supply of commercial LPG cylinders, In a statement, the association said that the hotel industry will also face difficulties until the gas supply returns to normal. The Hotels Association added despite the oil companies assured that there would be no disruption in gas supply for 70 days, the sudden stoppage is a big blow to hotel industry across the city.
“The supply of gas cylinders for commercial use has been stopped from today. Since the hotel industry is classified as an Essential Service, the common people, senior citizens, students, medical, and other people who depend on it will face difficulties in their daily meals,” the notice read, according to ANI news agency.
Association president PC Rao later said hotels would continue operating “till the last drop” of available gas stocks while urging the government to restore supply immediately.
Chennai Hotels Seek Urgent Government Intervention
Hospitality industry leaders in Chennai have also raised concerns over the LPG shortage. The hotels’ association wrote to Prime Minister Narendra Modi requesting urgent intervention to ensure uninterrupted supply of commercial cooking gas. Association president M Ravi said the food industry operates around the clock and supplies meals to hospitals, IT parks, college hostels, train passengers and business travellers. Any prolonged disruption could affect a large number of people who rely on restaurant food daily.
He also noted that banquet bookings and events at hotels could be impacted if gas supplies remain uncertain.
Mumbai Hospitality Sector Also Under Pressure
The hospitality industry in Mumbai is also facing a growing crisis due to the shortage of commercial LPG cylinders. Industry estimates suggest that nearly 20% of hotels and restaurants have already suspended operations. Vijay Shetty, president of the India Hotels and Restaurant Association told India Today the crisis could soon paralyse the restaurant industry in Mumbai.
“All restaurants in Mumbai will be shut in the next two days if this shortage continues,” Shetty said.
He added that the association has written to Union Petroleum Minister Hardeep Singh Puri and is also in touch with Maharashtra Civil Supplies Minister Chhagan Bhujbal. “As of today, 10–20 percent of our members are facing problems. By tomorrow it will be 60 percent. By the day after tomorrow, it will be 100 percent impact on restaurants, forcing them to shut,” he said.
According to a report by NDTV, several well-known eateries in areas like Dadar, Andheri and Matunga have begun shortening their menus and reducing operating hours to conserve gas supplies. Slow-cooked dishes such as dal makhani and rava dosa are among the items being temporarily removed from menus.
Industry Bodies Raise Alarm
National-level hospitality organisations have also flagged the issue. The Federation of Hotel and Restaurant Association of India (FHRAI) wrote to Petroleum and Natural Gas Minister Hardeep Singh Puri highlighting widespread disruption at the ground level. The association said several LPG distributors were withholding supplies, citing a government order issued earlier this month. FHRAI Secretary General Jaison Chacko requested the government to clarify that no restrictions apply to the hospitality sector and to ensure seamless distribution of commercial LPG cylinders.
Similarly, the National Restaurant Association of India (NRAI) said suppliers were unable to meet the industry’s gas requirements despite government assurances that there is no official ban on commercial LPG supply.
Government Response – Hardeep Puri Breaks Silence
The Ministry of Petroleum and Natural Gas has said it has directed oil refineries to increase LPG production to meet rising domestic demand. The ministry also introduced a 25-day inter-booking period for LPG refills to prevent hoarding and black marketing.
Officials said imported LPG supplies are currently being prioritised for essential sectors such as hospitals and educational institutions. A committee of senior executives from oil marketing companies has also been set up to review supply requests from industries including restaurants and hotels.
Minister Hardeep Singh Puri recently said India’s energy supply remains stable and assured that there is “no room for anxiety,” adding that imports from routes outside the Strait of Hormuz continue without disruption.
Former Karnataka CM B Bommai Reacts
Former Karnataka CM and BJP MP Basavaraj Bommai says, “Petrol and diesel are under control, but LPG, which comes from Gulf countries, has been temporarily halted. I think it will be back in operation by next week… The government is working continuously. Because of this, Iran has granted passage to three ships carrying our country’s oil. That is the goodwill of the PM Modi government… Whatever happens, they (the opposition) will link it to PM Modi. They are not thinking about the country… They want to play politics on everything…”
Karnataka DyCM DK Shivakumar: ‘Discuss In Parliament’
On reports of commercial LPG shortage, Karnataka Deputy CM DK Shivakumar says, “The government should discuss this issue in Parliament. Because the government is not giving time to discuss this issue, all INDIA alliance MPs are protesting. What are they (govt) fearing? On the occasion of Women’s Day, gas prices were increased. No (BJP) MPs spoke about it or protested on this issue.”
Shashi Tharoor Reacts
Congress MP Shashi Tharoor reacted to reports of shortage of commercial LPG in Maharashtra and Karnataka, saying,” This is a very serious problem which is happening due to the conflict in Iran…There is a shortage of availability, and also the prices are being hiked.”
India’s LPG Consumption
India consumed some 31.3 million tonnes of LPG annually. As much as 87 per cent of this is in the domestic sector i.e. household kitchens, and the rest in commercial establishments such as hotels and restaurants. Of this total requirement, as much as 62 per cent is met through imports. The US and Israel attack on Iran and Tehran’s retaliation has shut the Strait of Hormuz – the conduit through which India got 85-90 per cent of its LPG imports from countries like Saudi Arabia.
