Restaurant, Hotel Bodies Warn of Widespread Shutdowns Amid Severe LPG Shortage
Smaller and medium-sized eateries are most vulnerable, as they typically operate with limited reserves.
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Restaurants and hotels across India are experiencing acute disruptions due to a shortage of commercial LPG cylinders. The crisis has led to partial or complete shutdowns in major cities, with industry associations warning of widespread closures if supply is not restored. The shortage follows recent price hikes for both commercial and domestic LPG cylinders, compounding operational challenges for food service establishments.
According to The Hindu, hotel and catering businesses in Kerala are facing imminent closure threats as commercial LPG supplies dwindle. Owners report receiving only a fraction of their usual cylinder allotment, forcing some to rely on firewood stoves or reduce operations. The All Kerala Caterers’ Association has indicated that if the situation persists, a steep hike in food prices and mass closures are likely.
As reported by Deccan Herald, nearly 50 percent of hotels and restaurants in Mumbai may be forced to shut operations within days if the LPG shortage continues.
Industry leaders have stated that “the hospitality sector is an essential service that caters to millions of people every day including working professionals, students and both domestic and international travellers, and it supports a vast ecosystem of employment through cloud kitchens, industrial kitchens and catering establishments.”
As highlighted by Hindustan Times, the ongoing conflict in West Asia has disrupted petroleum and LPG imports, prompting the Ministry of Petroleum and Natural Gas to prioritise supply to essential non-domestic sectors. Hotel owner associations in Bengaluru and Chennai have reported that their LPG stocks may last only one or two more days, raising concerns about immediate operational halts.
Opposition leaders have criticised the government’s response, citing the invocation of the Essential Commodities Act and the extension of the minimum waiting period for LPG cylinder bookings to 25 days. Restaurant associations in Chennai and Bengaluru have warned that continued disruption will affect not only businesses but also students, medical professionals, and the general public who rely on these establishments for daily meals.
Reports from Hyderabad indicate that paying guest accommodations and private hostels are also experiencing meal disruptions due to the LPG shortage. Owners have expressed concern that prolonged supply issues could severely impact residents’ access to regular meals.
In Mumbai, approximately 20 percent of hotels and restaurants have already shut down, and operations in Bengaluru and Chennai are similarly affected as recent coverage revealed. Associations have appealed to both state and central governments for urgent intervention, noting that the hospitality industry is an essential service for many urban residents.
Hotel associations in Bengaluru and Chennai have stated that commercial LPG distributors have stopped supplying cylinders, forcing many restaurants to close or consider alternative arrangements following statements from industry representatives. Some establishments have reduced menu items or shortened operating hours to conserve remaining gas supplies.
The National Restaurant Association of India (NRAI) has warned that any further disruption in LPG supply could lead to “catastrophic closure” of restaurants nationwide as industry warnings indicated. The NRAI, representing around half a million restaurants, has urged the central government to restore commercial LPG deliveries to prevent widespread shutdowns and protect employment in the sector.
Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.