Restaurants and hotels across several Indian cities are raising concerns over the supply of commercial LPG cylinders, warning that the disruption could affect kitchen operations and potentially impact the cost and availability of meals for customers.

Industry bodies and restaurant associations say the issue has emerged after oil companies halted the refilling of commercial LPG cylinders in several places. The move comes amid supply pressures linked to geopolitical tensions in West Asia and a government directive prioritising domestic LPG consumers.

The conflict in West Asia has disrupted tanker traffic through the Strait of Hormuz, a key corridor for global oil and LPG shipments, with several vessels delaying or suspending transit due to security risks.

With commercial kitchens heavily dependent on LPG, hotel and restaurant owners say the uncertainty around supply could disrupt operations if the situation continues.

Hotels warn of possible shutdowns

In Bengaluru, the Bangalore Hotels Association has warned that eateries may have to shut down if commercial LPG supplies are not restored soon.

Association president P.C. Rao said the supply of commercial gas cylinders to hotels stopped from Monday, March 9. According to him, the development has created anxiety across the hospitality sector.

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“The oil companies had earlier indicated that there would be no disruption in gas supply for around 70 days. However, the sudden stoppage of supply has come as a setback for the industry,” Rao told The Hindu.

He added that restaurants may not shut immediately, but continued disruption could lead to closures.

“While the restaurants may not close on Tuesday, if the supply does not resume, a situation is expected where eateries will be forced to shut,” he said.

As per multiple reports, Hoteliers say the concern is not only about business losses but also about people who depend on these establishments for their daily meals. Rao pointed out that many students, senior citizens and others rely on hotels and restaurants for food, making the sector an essential service.

Restaurants in Mumbai cut operations

The situation is already visible in parts of Mumbai, where several restaurants have scaled down operations due to the shortage of cooking gas.

Hotel Free India at Jacob Circle, known for its kheema and butter chicken, has shut down. Nanumal Bhojraj’s Masjid Bunder outlet opened briefly on Tuesday morning but had to close after running out of gas. New Edward Restaurant’s Shaan Chinese on D N Road remained shut for the entire day, while Udupi Niketan in Bombay Central reduced the number of dishes it served and shortened its service hours, Times of India reported.

Industry representatives say restaurants have begun removing dishes that require high-flame cooking, particularly Chinese and tawa-based items.

The strain on the sector is growing. Industry bodies estimate that nearly 20 per cent of hotels and restaurants in the Mumbai region are already fully or partially shut due to the shortage of cooking gas. If the supply crisis continues, they warn that as many as 50 to 60 % of establishments could close in the next few days.

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Supply disruption linked to government directive

The National Restaurant Association of India (NRAI) has also raised concerns with the Union government. In a letter to Union Minister for Petroleum and Natural Gas Hardeep Singh Puri, the body warned that confusion around a recent government directive could disrupt the supply of commercial LPG cylinders to restaurants, NDTV reported.

According to the NRAI, the directive from the Ministry of Petroleum and Natural Gas instructed public sector oil marketing companies to ensure LPG is supplied and marketed “solely to consumers of domestic LPG only.”

The association said the wording of the order has created uncertainty among distributors.

“Immediately after the issue of this order, suppliers across the country have indicated that the supply of commercial LPG cylinders to restaurants would be, therefore, stopped,” the NRAI said in its letter.

The body warned that such disruption could have wider consequences.

“The restaurant industry is predominantly dependent on commercial LPG for its operations. Any disruption therein will lead to a catastrophic closure of the majority of restaurants,” it said.

Crisis spreading to other cities

Similar concerns have been reported in Lucknow, where officials say refilling of commercial LPG cylinders stopped from Monday morning.

The city consumes around 14,000 commercial cylinders every day, distributed through about 125 agencies. Restaurants, tea stalls, street food vendors and catering services are already feeling the pressure as supplies tighten.

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Jagdish Raj, president of the All India LPG Distribution Federation, UP Circle, said no invoice for commercial cylinders had been generated by any plant in the previous 24 hours.

“Agencies with old stock are currently supplying regular customers, though it remains uncertain how long those reserves will last,” Hindustan Times quoted Jagdish Raj as saying.

Raj added that the upcoming wedding season could worsen the situation if supply disruptions continue.

Government steps and supply pressure

The supply crunch comes at a time when geopolitical tensions in West Asia have disrupted shipping routes, including the Strait of Hormuz, pushing up global energy prices.

Last week, the price of domestic LPG cylinders was increased by Rs 60, while commercial cylinders saw a hike of Rs 115.

To manage the situation, the government has invoked emergency powers under the Essential Commodities Act to ensure the uninterrupted supply of cooking gas for households. Refineries have also been directed to ramp up LPG production to meet domestic demand.

Chief Minister Siddaramaiah has written to Union Minister Hardeep Singh Puri seeking urgent intervention to restore commercial LPG supply.

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According to the state government, Karnataka’s commercial LPG demand has traditionally been supported by oil marketing companies, including IOCL, HPCL and BPCL, supplying hundreds of metric tonnes daily.

Industry fears wider impact

Restaurant industry representatives say prolonged supply disruptions could affect a sector that plays a major role in the economy.

The NRAI noted that the industry represents more than five lakh restaurants across India and generates an estimated annual turnover of Rs 5.7 lakh crore. It also provides direct employment to over 80 lakh people and supports allied sectors such as agriculture, food processing and logistics.