A sudden shortage of commercial LPG cylinders has created a serious crisis for the hospitality industry in Maharashtra and Karnataka, with restaurant associations warning that many eateries may be forced to shut down within days if supplies are not restored. Industry representatives say the disruption has already begun affecting operations in major cities such as Mumbai and Bengaluru, where hotels and restaurants are struggling to procure cooking gas. The supply crunch is being linked to global disruptions in energy logistics following geopolitical tensions in West Asia after the United States and Israel carried out strikes on Iran.
Leaders of restaurant bodies say the situation is escalating rapidly. Vijay Shetty, president of the India Hotels and Restaurant Association, stated that if the shortage continues, restaurants across Mumbai could shut within two days. He explained that while around 10 to 20 percent of establishments were initially affected, the impact is expected to expand sharply, potentially paralysing the entire sector. Restaurant owners report that commercial LPG supplies have largely stopped since Sunday, and even domestic cylinder deliveries are facing delays of several days after booking. Some operators said they are being forced to buy cylinders at inflated prices due to scarcity.
The shortage has also led to panic among households. Consumers with multiple domestic connections have rushed to book refills, resulting in long queues and extended waiting periods at distribution centres. Dealers warned that prolonged disruption could push some commercial users toward illegally purchasing subsidised domestic cylinders from the black market, which poses serious safety risks. Although domestic cylinders remain technically available, delivery timelines have stretched considerably.
In Karnataka, hotel associations have issued similar warnings. The Bangalore Hotels Association said hotel operations could be severely affected if the halt in commercial LPG supplies continues, adding that closures could begin immediately. Representatives noted that the disruption would impact students, working professionals and others who rely on affordable meals from local hotels. Industry leaders said that without cooking gas, food preparation would be impossible, leaving businesses with no option but to suspend services.
Government sources said supplies to domestic households and essential services such as hospitals are being prioritised. State-run oil marketing companies — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum — have been directed to focus on household needs. Officials have also extended the minimum waiting period between LPG bookings to prevent hoarding and stabilise distribution.
To manage the situation, the Ministry of Petroleum and Natural Gas has instructed refineries to increase LPG production and divert additional output for domestic consumption. Imported LPG originally meant for non-domestic use is being redirected to critical sectors such as hospitals and educational institutions. A committee comprising senior executives from oil marketing companies has been formed to review requests from restaurants, hotels and other industries and allocate available supply where possible. Authorities are also exploring new international suppliers, including Algeria, Australia, Canada and Norway, to strengthen import channels.
Karnataka Chief Minister Siddaramaiah expressed concern over the disruption and criticised recent LPG price increases, saying the rising costs have added to public hardship. Officials indicated that petrol and diesel prices are unlikely to be raised immediately, and piped gas tariffs for households are also expected to remain stable. Industry groups have urged urgent central intervention, warning that prolonged commercial LPG shortages could disrupt food services across major urban centres.
