LPG Shortage Hits Hotels and Restaurants in Mumbai, Kolkata, Bengaluru and Chennai Amid Middle East Tensions; Centre Responds
Commercial LPG cylinder shortages are impacting restaurants and hotels in major Indian cities amid Middle East tensions affecting global energy supply chains.
Kolkata, March 10: A shortage of commercial Liquefied Petroleum Gas (LPG) cylinders has begun affecting restaurants and hotels across major Indian metros including Mumbai, Kolkata, Bengaluru and Chennai. The supply disruption comes amid escalating geopolitical tensions in the Middle East, which have slowed fuel shipments and strained India’s LPG supply chain.
Supply Disruptions Linked to Middle East Conflict
The shortage follows heightened tensions between Iran and Israel, a development that has impacted shipping routes across the Persian Gulf. Industry sources say tanker movements have slowed due to increased maritime security risks and higher insurance premiums. Commercial Gas Cylinder Supply Stopped, Hotels To Remain Shut From March 10, Claims Bangalore Hotels Association; Seeks Centre's Intervention.
India relies heavily on imports for LPG, particularly butane and propane shipments from the Middle East. With shipments facing delays, distributors in several cities are struggling to maintain regular supplies of 19 kg commercial cylinders widely used by restaurants and food businesses.
Restaurant owners in Bengaluru and Chennai reported delays of three to five days in cylinder deliveries. While household LPG supply remains stable, the commercial sector is facing one of its tightest supply situations in recent years. LPG Gas Price Hike: Domestic Cylinder Up INR 60, Commercial LPG Cylinder Costlier by INR 115 From March 7.
Restaurants and Small Eateries Feel the Pressure
The shortage has begun impacting the hospitality industry, especially smaller establishments that rely entirely on LPG for cooking.
In Mumbai and Kolkata, some eateries have reportedly reduced menu options or switched to alternative fuels to manage operations. Industry bodies warn that prolonged supply disruptions could lead to higher operational costs for restaurants.
The Federation of Hotel and Restaurant Associations of India (FHRAI) has raised concerns about the growing demand supply gap.
“If the situation continues for several days, restaurants may have no option but to increase food prices,” a hospitality industry representative said.
Government Moves to Stabilise Supply
The Ministry of Petroleum and Natural Gas has responded by assuring that India holds adequate LPG reserves and that supply disruptions are being closely monitored.
Officials said state run Oil Marketing Companies (OMCs) have been directed to prioritize commercial cylinder distribution in major urban centers facing shortages. The government is also exploring alternative sourcing routes and additional shipments from Southeast Asia and African suppliers.
Government Steps In to Address Commercial LPG Shortage
Authorities emphasized that household LPG supplies remain unaffected and urged businesses to avoid panic buying.
Economic Impact and Outlook
India imports nearly 50 percent of its LPG requirements, making the sector vulnerable to global supply shocks. While domestic LPG cylinders for households remain subsidized, commercial LPG prices are directly influenced by international markets.
Energy analysts believe the current shortage is primarily a logistical disruption rather than a structural supply crisis. However, the duration of the Middle East tensions and shipping disruptions will determine how quickly supplies stabilize.
For now, officials remain confident that alternative shipping routes and emergency supply adjustments will normalize LPG availability in the coming days.
(The above story first appeared on LatestLY on Mar 10, 2026 09:22 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).