Hoteliers across various States in the country have flagged shortage of cooking gas supply and have urged the government to ensure uninterrupted supply of fuel.
The National Restaurant Association of India (NRAI), Indian Hotel and Restaurant Association (AHAR), Bengaluru Hotels Association, Chennai Hotels Association, Chennai Tea Shops Association, the Hotel & Restaurant Association of Odisha (HRAO), and several hoteliers have warned that non-availability of cooking gas would force many units to shut their shops.
“The restaurant industry is predominantly dependent on commercial LPG for its operations,” NRAI said in a statement. “Any disruption therein will lead to a catastrophic closure of majority of restaurants.”
Bengaluru is witnessing disruptions in the supply of commercial LPG cylinders, affecting several eateries across the city and triggering concerns among both businesses and households.
On Tuesday (March 10), a number of small restaurants limited their services to “only tea and coffee” after being informed by gas dealers that refilling of commercial cylinders had not taken place since March 7. However, around 10–15% of establishments using piped gas from GAIL (India) Limited are continuing operations without disruption.
The Bengaluru Hotels Association had earlier warned that if supply is not restored soon, establishments may be forced to halt food services, as most small eateries rely heavily on LPG for cooking and use multiple cylinders each day.
Karnataka Chief Minister Siddaramaiah in a letter to Union Petroleum Minister Hardeep Puri suspected the shortage of commercial LPG could be due to the Ministry’s March 9 order prioritising LPG production for domestic consumers. “While the intention behind the order — to ensure uninterrupted supply to households — was appreciated, its implementation had led to an unintended shortage of commercial LPG in Bengaluru,” he said.
Around 20% of hotels and restaurants in Mumbai have shut down, with associations projecting that nearly 50% of hotels and restaurants in Mumbai will shut down in two days if the situation does not improve. “We understand the reason but instead of blanket stoppage, the supply should continue for at least 25%, so the hotels can survive somehow,” a representative of AHAR, the apex body for the hospitality trade in Maharashtra, said.
While some large restaurants in Delhi-NCR said they have not yet been impacted by the shortage in commercial LPG because they have a bank of four to six extra cylinders, smaller outlet owners said that they are not getting regular supply due to longer waiting period and are forced to buy in the black market.
A kebab and biryani shop owner in New Delhi said: “Supply has been impacted for three days. We are trying to use the cylinders less because it is becoming more expensive by the day. The cylinders available in the black market that cost ₹1,200 yesterday are now being sold at ₹1,400 to ₹1,500 today. Food inflation has already impacted our profits, and now there is this…”
Meanwhile, restaurateur Zorawar Kalra, who owns and operates chains such as Farzi Cafe, and Pa Pa Ya across the country, said: “Restaurants cannot cook without fuel. Commercial LPG is the backbone of kitchen operations across India, and any disruption threatens the continuity of food service for millions.”
“The restaurant industry is a ₹6.6-lakh-crore ecosystem and a major employer, and it is critical that policy clarity ensures uninterrupted LPG supply to keep kitchens running. A single day’s lack of supply will cost the industry and the economy between ₹1,200-1,300 crore as 75% of the ecosystem relies on LPG,” he added.
Mr. Kalra requested the government to give essential services status for the hotel industry and to also prioritise the supply of commercial gas cylinders to restaurants and cloud kitchens.
The cooking fuel shortage has affected paying guest accommodations and hostels in Hyderabad. Managers and supervisors of large paying guest facilities, particularly in the IT hubs such as Gachibowli, Kukatpally and Madhapur, fear disruption to meals preparation. “The supply has dropped drastically, by 75%. If we used to order around 100 cylinders earlier, we are now receiving barely 20 to 25,” says Lakshmi of Amulya Grand Luxury Women’s PG in Gachibowli. “If this continues for long, we may struggle to cook meals for all our residents.”
Tamil Nadu Chief Minister M.K. Stalin said he has written to Prime Minister Narendra Modi seeking necessary alternative arrangements to address shortage. “I have also emphasised that the Union Government must ensure that the LPG Cylinder shortage arising from this conflict does not affect the public, commercial establishments, or MSME industries in Tamil Nadu,” he said.
The Sree Annapoorna Sree Gowrishankar Group, a Coimbatore-based prominent eatery chain, put out a notice on Monday night (March 9, 2026) informing customers that it will limit its menu to essential items, and the availability of some items will be restricted to specific hours of the day.
Durai Palanisamy, chairman of Southern India Mills Association, said that all textile processing factories use LPG commercial cylinders for singeing process and there is no alternative for it. This will come to a standstill, he said.
The Madhya Pradesh government is going to form a three-member committee to monitor the arrangements of supply of essential items like cooking gas, oil, and food items, Chief Minister Mohan Yadav said as he reviewed the food and civil supply management in the State.
Meanwhile, R.K. Gupta, vice-president of the LPG Association, said commercial LPG cylinders have not been supplied at any bottling plant in Bhopal by the three oil companies since March 9. “We have been told that hospitals and educational institutions will be given priority. The district administration and the Collector has called a meeting of all LPG distributors, officials of oil companies and the owners of businesses to hold discussions on the situation,” he said.
The hospitality sector in parts of Punjab have been impacted as well. Satish Kumar Arora, president of the Punjab Hotel, Restaurant, and Resort Association said limited supply of commercial gas has started creating anxiety over impending losses. “Currently, wedding season in underway and we were expecting a brisk business, but now it seems to be in the doldrums. Today, we have observed that there was a reduced gas pressure in the direct pipeline gas supply. Those establishments which are completely dependent of pipeline based gas supply are suffering the most as there’s no other option for them.”
Consumers in neighbouring Haryana are grappling with the shortage too. Lalita Singh, a restaurant owner in Gurugram, said she was contemplating on using her domestic gas cylinder to tide over the crisis, but wonders how to keep things going at home. “Many restaurants owners are facing the similar situation,” she added.
In Chhattisgarh, remote areas of the State have low number of gas agencies and consumers fear that the waiting time will go up due to supply side pressure. In the State’s Bastar region, the impact is expected to be less visible because the refilling rate of Ujjwala scheme cylinders is already slow due to affordability issues and people have access to traditional energy sources such as wood.
The Hotel and Restaurant Association of Odisha (HRAO) urged Hardeep Singh Puri, Union Minister for Petroleum and Natural Gas, to take immediate steps to restore and ensure uninterrupted supply of commercial LPG cylinders to hotels and restaurants.
“Hotels and restaurants are highly dependent on the uninterrupted supply of commercial LPG cylinders for their daily kitchen operations. The sudden disruption in supply has severely affected food preparation and service in many establishments,” J.K. Mohanty, chairman of HRAO.
Many hotels in the coastal town of Puri, which receives thousands of tourists from India and abroad, raised alarm saying they would run out of commercial LPG cylinders in the next couple of days.
Hundreds of hotel and restaurant owners in Uttar Pradesh are in panic as some cities witnessed long queues outside LPG distribution centres in a hurry to refill their gas cylinders. Numerous people were spotted waiting outside gas agencies amid rumours of shortage.
Neighbouring Bihar witnessed similar scenes. The shortage of commercial LPG cylinders affected regular business in Patna.
Pramod Kumar, owner of restaurant Tandooriwala, said: “The shortage has badly affected our business. For the time being, we have started cooking on coal and induction stove to meet the demands. When we are asking for four cylinders, the suppliers gave us only one cylinder. If this situation will prevail for a long time, then we have to close the restaurant until the situation normalises.”
In Rohtas, Kaimur, Darbhanga and Madhubani districts, long queues formed outside gas agencies for the refill of domestic LPG cylinders as some consumers were worried that it will not be available in the days to come.
A consumer in Ranchi, the capital of Jharkhand, said: “I booked my gas cylinder on February 28 for ₹910. I also received the DAC (delivery authentication code) but when the gas price went up, it got cancelled.”
Andhra Pradesh Civil Supplies Minister Nadendla Manohar on Tuesday clarified that there is no shortage of LPG gas in the State and people should not panic. The Minister said the LPG supply is being monitored from HPCL Visakhapatnam refinery, the Hassan–Cherlapalli pipeline from Mangaluru, and HPCL, BPCL, and IOC facilities in Visakhapatnam.
The Minister warned of strict action against any attempt to manipulate prices or rumour-mongering and said the supply chain would be monitored district-wise.
Visakhapatnam houses HPCL’s major LPG cavern storage facility with a capacity of about 60,000 metric tonnes. While one LPG vessel from Qatar has already arrived and is unloading cargo, another shipment is reportedly delayed due to disruptions near the Strait of Hormuz, adding to uncertainty over future supplies.
The Andhra Pradesh Star Hotels Association (ASHA) has written to the Civil Supplies Minister expressing concern over the recent order issued by the Ministry of Petroleum and Natural Gas that prioritises propane and butane streams for the production of domestic LPG cylinders. The association members said the decision may affect the availability of commercial LPG cylinders, which are essential for the hospitality sector.
The shortage of commercial LPG cylinders is threatening to severely impact the hospitality sector in Kerala as well, along with several other key sectors, with the crisis likely to force many establishments, including catering units and hotels, to shut down within days. Although CNG is currently available, the situation remains precarious and could soon disrupt public transport, as a significant number of vehicles rely on CNG.
The crisis worsened just a few days after the prices of both commercial and domestic gas cylinders were increased nationwide by public sector companies. Speaking to The Hindu, Shahul Hameed, general secretary of the All Kerala Caterers’ Association, who runs Foodwey Catering in Kozhikode, said a good number of caterers in Kerala will soon have to shut down due to the severe shortage of commercial cooking gas. “For instance, we need around seven cylinders per day to run the show. However, we received hardly two cylinders in the last two days. With this, how can a caterer run the business?” he asked.
There is some respite for hoteliers in Kerala as the demand is subdued in March due to Ramadan fasting by Muslims, Hindus avoiding functions in the Malayalam months of Kumbam and Meenam.
Kerala has also called a meeting of oil company representatives to discuss the issues related to the shortage of cooking gas. The oil companies have said that there was no shortage in the supply of cylinders for domestic use, while institutions like hospitals, which use cylinders for industrial purposes, will be considered a priority. The State will also take strict measures to prevent hoarding and diversion of gas cylinders. Inspection squads will be formed under the leadership of the District Collector and District Supply Officers to ensure the availability of gas cylinders.
People across West Bengal were hit by the ongoing LPG crisis as well. Restaurants in Kolkata have reported a shortage of commercial gas supply. Autorickshaw drivers were seen forming serpentine lines outside CNG stations in Kolkata as many reported that petrol pumps were running low on CNG supply.
Hotel and Restaurant Association of Eastern India president Sudesh Poddar said the hospitality industry in West Bengal is facing a major crisis. “Supply shortage started over the last five to six days, but since today (March 10) supply has been stopped completely,” Mr. Poddar said. He added that some restaurants may have stock anywhere between two to seven days, but most do not have a backup to keep their kitchens running for longer period.
Protests erupted in northern Bengal’s Cooch Behar district where locals complained that domestic cooking gas was not supplied to their homes even after 10 days of booking cylinders.
On March 7, West Bengal Chief Minister Mamata Banerjee protested against the price hike of LPG cylinders and also raised concerns about unavailability of gas cylinders in the market.
In Rajasthan, hotels, restaurants and roadside food vendors were faced with a sudden shortage of LPG cylinders after the oil marketing companies directed the distributors to stop fresh bookings for commercial use. LPG Distributors’ Federation of Rajasthan president Deepak Singh Gehlot said internal advisories have been issued for not placing new orders for commercial cylinders.
With the wedding season in full swing and the tourist arrivals registering an increase in the State, the hoteliers were worried about not having cooking gas in sufficient quantity. Hotel Federation of Rajasthan president Husain Khan said the restriction would make it impossible to meet the basic needs in the hospitality sector.
While the federations’ office-bearers were planning to meet Chief Minister Bhajan Lal Sharma for seeking relief, the matter was raised in the State Assembly on Tuesday. Congress MLAs demanded that the BJP-led State government give subsidy on the increased prices for both domestic and commercial LPG cylinders.
Even as Food and Civil Supplies Minister Sumit Godara said the government would ensure that there is no shortage of cooking gas, the Congress legislators said the hotels and restaurants were on the verge of closure because of unavailability of commercial LPG cylinders. The Congress members raised slogans and staged a walkout from the House.
The Gujarat government has curtailed gas supply to industries by up to 50% to safeguard domestic LPG availability amid supply concerns linked to tensions in West Asia, State Energy Minister Rushikesh Patel said on Tuesday.
Mr. Patel said the move was aimed at ensuring uninterrupted cooking gas supply to households while the State coordinates with the Centre to manage potential disruptions in imports.
The Minister said restrictions had been imposed on certain industrial uses of gas so that domestic consumption remains unaffected. “We have imposed a 50% cut in the gas supply to industries. For fertiliser and milk processing units, the cut is around 40%,” Mr. Patel said.
He stressed that the State government was taking precautionary measures in line with periodic guidelines from the Centre to prevent panic and maintain stable LPG supplies.
Responding to reports from Rajkot suggesting hotels and restaurants had been informed about restrictions on commercial LPG cylinders, the Minister denied that any such directive had been issued. “There is nothing like that. As far as commercial gas cylinders are concerned, there is currently no cut or restriction,” he said.
Earlier this month, industry representatives said around 100 ceramic manufacturing units in Morbi in Gujarat had shut down due to disruptions in gas supply linked to the West Asia situation.
Close to 90% of India’s LPG import and 30% of natural gas requirements are routed through Strait of Hormuz, which is now shut by Iran.
Meanwhile, the Ministry of Petroleum and Natural Gas has set up a committee to review supply shortages of commercial LPG. “For LPG supply to other non-domestic sectors, a committee of three Executive Directors (EDs) of Oil Marketing Companies (OMCs) have been constituted to review the representations for LPG supply to restaurants/hotels/other industries,” the Ministry said in a post on X.
Invoking the Essential Commodities Act, the Ministry on March 6, directed refineries to maximise LPG output and asked the OMCs to focus on domestic gas supply. It has also extended LPG refill booking cycle to 25 days from 21 days. The next day, the prices of non-subsidised domestic LPG cylinders were increased by ₹60, the first one since April last year. The price of commercial LPG was also raised by ₹114.5 per 19 kg cylinder.
