As tensions in West Asia escalate, some cities are beginning to see disruptions in the supply of commercial LPG cylinders used by restaurants, hotels and food businesses. Industry bodies say the impact is already being felt in cities such as Bengaluru, Mumbai and Chennai, where eateries rely heavily on commercial cooking gas for daily operations. Authorities have prioritised domestic LPG supplies for households to ensure that cooking gas remains available for residential consumers. However, this has tightened availability for commercial establishments in some areas.
Amid disruptions to imported gas supplies due to the widening West Asia conflict, the government has revised the priority order for allocating domestically produced natural gas. Under the new arrangement, LPG production, along with CNG and piped cooking gas, has been placed at the top of the priority list and their requirements will be fully met first, according to a gazette notification cited by PTI.
The government has formed a panel of three Executive Directors (EDs) of Oil Marketing Companies (OMCs) to examine requests for LPG supply from restaurants, hotels and other industries.
Karnataka
Karnataka deputy CM and State Congress President, DK Shivakumar, on Tuesday said that the state’s “entire hotel and commercial industry has been affected." Hotel and restaurant operations in Bengaluru are likely to face disruption from March 10 after the supply of commercial gas cylinders came to a sudden halt, the Bangalore Hotels Association said on Monday. The association noted that the stoppage, linked to rising energy costs and supply constraints caused by the West Asia conflict, could force hotels to shut operations. “Since the gas supply has stopped, the hotels will be closed from tomorrow,” it said in a release, cited by PTI.
It added that the hotel industry, considered an essential service, caters to common people, students and medical professionals who depend on hotels for daily meals, and the disruption could affect them until gas supplies return to normal. PC Rao, honorary president of the association, had earlier said, “Only about 10% of hotels and restaurants in Bengaluru received their LPG supply today. We have gas to keep our kitchens running only until Tuesday afternoon or evening.”
Maharashtra
Mumbai is already seeing the impact. LPG dealers said that the disruption has already begun affecting the availability of cooking gas. Consumers who booked refills are now facing delays ranging between two and eight days. Furthermore, they added that the supply of commercial cylinders used by hotels and restaurants has been completely halted and eateries could enter crisis mode. LPG dealers further added that hotels and other commercial establishments may be forced to buy domestic cylinders from the black market. "This is illegal as well as dangerous," they cautioned.
Pune municipal commissioner Naval Kishor Ram had also told ANI earlier that while all 27 crematoriums in the city were operational, the 18 facilities that depend on Liquefied Petroleum Gas (LPG) will be temporarily shut due to a “break” in supply, in order to prevent a shortage. Ram said, "Crematorium systems have not been disturbed, or there are no breaks in this... We have around 27 crematoriums in the city, with all the facilities. LPG is used in 18 of them... Due to the break in the supply, we are discouraging the use of commercial LPG in these 18 places to prevent the shortage. But we do have other facilities."
West Bengal
The ongoing conflict is also raising concerns over potential disruptions for restaurants and bakeries in Kolkata. Establishments that depend on LPG scrambled to explore alternative options on Monday after the Union Ministry of Petroleum and Natural Gas suspended the distribution of non-domestic LPG cylinders.
Sources within the hospitality and food sectors cautioned that operations could soon be affected if the supply of commercial LPG continues to remain suspended.
In response, the government has stepped in with a series of measures to manage the crisis, prioritising domestic cooking gas supplies for households over other sectors to ensure that daily life for citizens remains largely unaffected.
What government said?
- Directed refineries to ramp up LPG production: The government has asked oil refineries to increase output and divert the additional LPG specifically towards domestic consumption. “In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use,” the ministry said.
- Extended LPG refill booking cycle: The gap between LPG refill bookings has been increased from 21 days to 25 days to avoid hoarding/black marketing.
- Set up a committee to review supply to commercial users: A panel of three Executive Directors (EDs) of Oil Marketing Companies (OMCs) has been formed to examine requests for LPG supply from restaurants, hotels and other industries. “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.”
What triggered the sudden LPG shortage?
India’s annual LPG consumption stands at about 31.3 million tonnes, with the bulk, nearly 87%, used in household kitchens, while the remaining share goes to commercial users such as hotels and restaurants. A large portion of the country’s requirement, around 62%, is fulfilled through imports. However, the recent US and Israel attack on Iran and the disruption to the oil supplies flowing through Strait of Hormuz, a critical route for India’s LPG supplies, has raised concerns.
Nearly 85–90% of the country’s LPG imports from nations such as Saudi Arabia pass through this corridor. Now, as the conflict intensifies, India is considering alternative sources for fuel imports, turning to regions like Russia and West Africa.