The shortage has arisen due to disruptions in the supply chains of LPG imports, driven by geopolitical tensions in West Asia. Industry groups have raised alarms about the operational challenges facing restaurants and hotels that rely on commercial LPG cylinders.
What has led to the LPG shortage?
The supply disruption is a consequence of military actions by the United States and Israel against Iran, followed by Tehran’s retaliation, which resulted in the closure of the Strait of Hormuz.
This waterway is critical for India’s energy imports.
Approximately 85–90% of India’s LPG imports from West Asia, including shipments from Saudi Arabia and Qatar, traverse this strait.
Reports of shortages have emerged from cities like Mumbai, Bengaluru, Kolkata, and Chennai.
The government is taking steps to curb hoarding and black market activities amid the supply crisis.
To this end, it has invoked the Essential Commodities Act of 1955, empowering authorities to regulate the production, supply, distribution, and trade of essential commodities.
As per the Ministry of Petroleum and Natural Gas, the demand for LPG cylinder bookings surged to approximately 75.7 lakh, compared to an average of 55.7 lakh before the conflict, indicating panic-driven bookings in some regions.
Officials have urged consumers to remain calm, assuring that there is no “dry-out at any LPG dealer.”
Data from Justdial shows a notable increase in consumer searches for LPG and cooking gas services amid concerns about supply availability. Between February 28–March 5, 2026, and March 6–March 11, 2026, LPG-related searches across India rose 3.5 times. Major metros observed significant hikes, with Delhi seeing nearly a sixfold increase, Mumbai four times, and Bengaluru and Chennai close to a threefold rise.
Impact on the hospitality sector
Restaurants and hotels heavily depend on commercial LPG cylinders for their daily cooking. Industry representatives warn that shortages could disrupt kitchen operations swiftly.
“Kitchen operations in restaurants and hotels are heavily reliant on LPG, and any shortages or price increases could significantly hinder their performance nationwide,” stated K B Kachru, President of the Hotel Association of India and Chairman – South Asia, Radisson Hotel Group.
“These disruptions threaten the industry, as many small and medium-sized businesses might be forced to temporarily close due to the ongoing LPG shortage, causing difficulties for everyone involved,” he added.
In Thane, representatives from the industry warned that over 800 hotels and restaurants could face closure if supplies aren’t restored soon.
“Many establishments currently have LPG stock sufficient for only five to six days. Without immediate restoration of supply, closures may become inevitable,” stated Raghunath Shetty, secretary of the Thane City Hotel Association.
“Some vendors are charging an additional ₹400 per cylinder in the black market,” claimed Ratnakar Shetty, vice president of the association.
Adapting in response to the crisis
With the tightening of supplies, numerous hotels and restaurants are modifying their operations to conserve fuel.
The Madhya Pradesh Hotel Association has advised members to focus on dishes that utilize less gas or have shorter cooking times and to temporarily limit menu items that require long simmering or multiple burners.
“We have suggested our members to prepare ‘tawa’ rotis using traditional ‘tandoors’ fueled by coal or wood instead of gas. Similarly, dishes like pizzas suitable for microwave preparation should be prioritized,” stated Sumit Suri, president of the association.
At Sayaji Hotel Wakad in Pune, management has streamlined menus and altered cooking methods to reduce LPG consumption. Several fried dishes have been temporarily omitted, concentrating instead on baked, grilled, and slow-roasted options.
The hotel has also increased its reliance on electric equipment for making gravies and slow-cooked meals while temporarily shutting down certain energy-intensive setups to optimize fuel use.
“Such situations prompt the industry to reconsider kitchen operations. Electricity can support various functions, albeit at high costs. In the long run, hospitality businesses may explore renewable solutions like solar energy to achieve sustainable and cost-effective operations,” remarked Saurabh Choksi, General Manager of Sayaji Hotel Wakad.
In Ajmer, traders have observed a surge in demand for coal and firewood as eateries begin to phase out LPG. They report that daily wood consumption has escalated from around 100 kg to 200–250 kg.
In Hyderabad, hotel representatives indicated that ongoing shortages could severely disrupt operations if they persist.
“Hotel owners are worried about a situation akin to COVID-19. They face challenges in feeding their staff. Unlike the pandemic, gas is currently in limited supply. They can’t simply dismiss staff when the hotel is closed,” noted Ashok Reddy, president of the Hyderabad Hotels Association.
Small establishments in the city are attempting to cope with induction stoves and firewood, although these alternatives aren’t practical for many restaurants in multi-storey buildings, according to industry representatives.
Operational adjustments in hotels
Large hotel operators report making adjustments in their kitchen operations while maintaining service.
“In light of the current limitations surrounding commercial LPG availability in certain areas, we are closely tracking developments across our operations. Ensuring uninterrupted food services across our sectors—including healthcare, education, manufacturing, GCCs, and corporate workplaces—is our primary concern. We must guarantee continuity in operations to ensure the well-being of people, the continuation of education, and progress in work,” explained Chef Arjyo Banerjee, Chief Culinary Officer, Compass Group India.
“As hotels and restaurants throughout India contend with the prevailing gas shortage, multiple hotelier associations have alerted about potential closures and fuel supply disruptions. However, this situation has compelled us to adapt our kitchen operations to ensure the guest experience remains unaffected,” commented Saurabh Gahoi, Senior Vice President India at Ramee Group.
“We have temporarily adjusted our menus to focus on less gas-intensive dishes and are utilizing induction cooking more extensively to keep operations running smoothly,” he added.
Hotels are also increasingly using electric appliances where possible.
“The LPG shortage is testing our resilience, but we are swiftly adapting to ensure guest safety. We are streamlining menus, transitioning to electric alternatives when feasible, and collaborating with industry peers and authorities for immediate supply relief,” remarked Anish Srivastava, General Manager – Operations at Sayaji Hotels.
“At Archer Hospitality, which oversees The Astor Goa, The Astor Kolkata, and DoubleTree by Hilton Agra, LPG and PNG are vital energy sources that support daily kitchen operations in our restaurants, banquets, and in-room dining services,” stated Vikram Puri, Managing Director of Archer Hospitality.
“Across our properties, we have employed a blend of operational flexibility and contingency planning… These adjustments have significantly reduced LPG usage… without affecting food quality or overall dining experience,” he added.
Government and state responses
Authorities are actively monitoring supplies and distribution across states. In Karnataka, officials stated that providing commercial cylinders to hotels and restaurants might remain challenging for about a week due to stock limitations, while prioritizing available gas for hospitals, hostels, and residential schools.
Simultaneously, some states are exploring alternatives to LPG supply. Gujarat has opted to provide new piped natural gas (PNG) connections to restaurants, hotels, and institutions in areas with available city gas distribution networks.
Industry bodies continue discussions with the government to ensure uninterrupted supply. The Hotel Association of India has announced that the government will allocate 20% of the average monthly commercial LPG requirement to hotels and restaurants as a temporary relief strategy.
