LPG crisis shuts 20% of Mumbai hotels, restaurants warn of wider closures
Hotels and restaurants across Bengaluru, Chennai, and Mumbai have warned of a worsening shortage of commercial LPG cylinders, saying the disruption could force many establishments to shut kitchens if supplies are not restored quickly.
Industry bodies say the shortage has already affected operations in several cities, with some restaurants closing temporarily due to the lack of cooking gas. The crisis comes amid supply disruptions linked to tensions in the Middle East and rising energy costs.
20% of Mumbai hotels shut, more closures likely
The AHAR – Indian Hotel and Restaurant Association, which represents hotels and eateries in Mumbai, said around 20% of the city’s hotels have already closed because of the LPG supply crunch.
The association warned that up to 50% of Mumbai’s hotels could shut within two to three days if the supply situation does not improve.
According to AHAR, the number of restaurants that remain open will largely depend on the LPG stock available with individual establishments. The association said there is no collective decision yet to shut hotels, leaving the final call to individual owners depending on their remaining fuel supply.
Bengaluru hotels warn of shutdown
In Bengaluru, the Bangalore Hotels Association said the sudden halt in commercial LPG supply has left the industry in a difficult position.
The association said hotel operations across the city could begin shutting down from March 10 if the supply does not resume.
Hotel owners pointed out that oil companies had earlier assured uninterrupted LPG supply for around 70 days, making the sudden disruption a major setback for the sector.
The association urged the Union government to intervene immediately and restore normal supply. Its president PC Rao said hotels would try to continue operations “till the last drop” of gas to serve customers.
Chennai industry raises alarm
Hotel owners in Chennai also flagged the crisis, warning that disruptions could affect essential food services.
In a letter to Prime Minister Narendra Modi, the city’s hotel association said the hospitality sector plays a critical role in serving hospitals, IT parks, college hostels, and travellers.
Association president M Ravi said interruptions in commercial LPG supply could disrupt food delivery to hospitals and institutions that rely on round-the-clock catering services.
Industry bodies seek urgent government intervention
National industry groups have also raised concerns over the situation.
The Federation of Hotel and Restaurant Associations of India (FHRAI) wrote to Petroleum and Natural Gas Minister Hardeep Singh Puri, warning of “widespread disruption at the ground level”.
FHRAI said several LPG distributors were withholding supplies citing a government order dated March 5, creating confusion in the supply chain.
The association urged the government to issue a formal clarification confirming that no restrictions apply to the hospitality sector and to instruct oil marketing companies to ensure uninterrupted distribution of commercial LPG cylinders.
Meanwhile, the National Restaurant Association of India (NRAI) said suppliers were increasingly unable to meet demand from restaurants, severely impacting daily kitchen operations.
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