Summary of this article
Commercial LPG shortage hits restaurants across several cities
Government prioritises domestic LPG supply amid West Asia crisis
Restaurants warn of shutdowns as fuel stock runs low
Restaurants, hotels and roadside eateries in several cities across the country are facing an acute shortage of commercial LPG cylinders following disruptions in supply linked to the ongoing West Asia conflict.
Industry bodies warned that many establishments may be forced to shut operations if supplies are not restored soon. The shortage has been reported in cities including Bengaluru, Pune, Mumbai, Delhi and Kolkata, with many eateries saying they have only one to three days of LPG stock left.
Sagar Daryani, president of the National Restaurant Association of India (NRAI), told PTI that restaurants were already considering reducing menu items or operating for fewer hours. He stated, "At the moment, people have LPG cylinder stocks for 1-2 days. If they don't get supplies in 1-2 days, then these restaurants will have to shut down, and this is largely in cities like Bengaluru, Pune, and Mumbai."
According to industry representatives, about 85 per cent of restaurants rely on commercial LPG cylinders for cooking.
Government Prioritises Domestic LPG Supply
The shortage follows the government's decision to prioritise LPG supply to households amid disruptions in global energy supply caused by the escalating conflict in West Asia.
The crisis has also affected maritime traffic through the Strait of Hormuz, a crucial route for energy supplies. India receives nearly 85-90 per cent of its LPG imports through this route from countries such as Saudi Arabia.
To ensure an uninterrupted domestic cooking gas supply, the government has revised the priority order for allocating domestically produced natural gas. LPG production, along with compressed natural gas (CNG) and piped cooking gas for households, has been placed at the top of the allocation list.
As a result, supply to commercial users such as restaurants, hotels and industries has been reduced.
Oil refineries have also been directed to maximise LPG production to meet household demand. Reliance Industries said it is increasing LPG output from its Jamnagar refining complex and diverting natural gas from its KG-D6 fields to priority sectors.
Commercial LPG Prices Rise Across Cities
Alongside supply concerns, LPG prices have also risen across major cities. A 14.2 kg domestic LPG cylinder now costs Rs 913 in New Delhi, Rs 939 in Kolkata, Rs 912.50 in Mumbai and Rs 928.50 in Chennai after a hike of Rs 60.
Commercial 19 kg cylinders saw a sharper increase of Rs 144. Prices currently stand at around Rs 1,884.50 in New Delhi, Rs 1,988.50 in Kolkata, Rs 1,836 in Mumbai and Rs 2,043.50 in Chennai. In other cities, prices include Rs 1,958 in Bengaluru, Rs 2,029 in Bhubaneswar and Rs 2,105.50 in Hyderabad.
Industry representatives said the immediate concern for restaurants is availability rather than price, as many establishments are already running out of cylinders.
Restaurants Begin Cutting Operations
The shortage has started affecting restaurant operations in several cities. In Pune, hoteliers warned that popular breakfast items such as dosa and uttapam may disappear from menus if supplies do not resume.
Ganesh Shetty, president of the Pune Hoteliers' Association, told PTI, "Dosa and uttapam require more gas than most other dishes. If the supply of commercial LPG cylinders is not restored immediately, these items will simply go off the menu."
"About 40 per cent of restaurants have indicated there will be immediate disruption, while another 30-40 per cent said they can run operations only for a few more days as they have limited stock," he told PTI.
Restaurant associations have written to the Union Ministry of Petroleum and Natural Gas seeking urgent intervention to stabilise the supply chain.
Sectors Under Pressure
The hospitality sector has warned that prolonged disruption could impact employment and daily food supply for many people who depend on restaurants, including students and working professionals.
Beyond the hospitality industry, there have also been concerns from telecom tower manufacturers regarding the stopped supplies of LPG used in galvanisation processes in the production of towers. The Digital Infrastructure Providers Association cautioned that sustained disruption could have an impact on telecom infrastructure deployment and network expansion, reported PTI.
Meanwhile, restaurant bodies have advised members to conserve LPG, reduce menus and explore temporary alternatives such as induction cooking equipment where possible. However, industry representatives said such alternatives cannot fully replace LPG in commercial kitchens that require high-intensity cooking for large-scale food preparation.
