Restaurants and hotels across India are facing a commercial LPG shortage, raising fears of temporary shutdowns in cities such as Mumbai and Bengaluru. Industry groups warn that prolonged disruptions could severely affect the food service sector and its supply chains.
The shortage is linked to the ongoing West Asia conflict involving Iran and Israel, which has disrupted global fuel shipments and pushed up energy prices. With crude oil prices crossing $100 a barrel, commercial LPG supplies have tightened in several regions.
Hospitality industry bodies, including the National Restaurant Association of India (NRAI), have urged the government to intervene urgently, warning that supply disruptions could lead to “catastrophic closure” of restaurants if the situation continues.
Meanwhile, the government has directed refineries to increase LPG production and prioritise domestic household supply, while imported LPG is being reserved mainly for essential sectors such as hospitals and educational institutions.
The crisis has also affected supply chains in some regions. For example, an LPG bottling plant in Kerala’s Malabar region temporarily halted refilling of commercial cylinders after LPG deliveries from refineries in Kochi and Mangaluru dropped sharply, reducing daily tanker arrivals from 32 to 16.
At the same time, LPG prices have increased amid rising global energy costs. Domestic LPG prices were raised by ₹60, while commercial cylinders used by restaurants were hiked by ₹114.5, pushing the price of a 19-kg commercial cylinder in Delhi to around ₹1,883.
Industry stakeholders warn that if supply disruptions persist, thousands of restaurants, catering units, and canteens could face operational challenges until fuel availability stabilises.
