Hotels, Restaurants To Shut Down In Mumbai, Bengaluru? LPG Shortage Amid West Asia Crisis Sparks Concern

Restaurant associations in Maharashtra and Karnataka have warned that food establishments may be forced to shut operations within days if supplies are not restored.

The impact of West Asia tensions is beginning to be felt in India, where commercial users of cooking gas or LPG is facing a gradual shortage in major cities.

Source : IANS

The escalating conflict involving the United States, Israel and Iran has heightened tensions in the Middle East, pushing global crude oil prices beyond $100 per barrel.

The impact is beginning to be felt in India, where commercial users of cooking gas or LPG in cities such as Mumbai, Chennai, Hyderabad and Bengaluru are facing a gradual shortage. Industries linked to tile and ceramic manufacturing in Morbi, Gujarat, are also reporting disruptions in gas supply.

Commercial LPG Supply Reduced

The government has directed refiners and fuel retailers to prioritise the supply of LPG cylinders for domestic consumers.

As a result, deliveries of 19-kg commercial cylinders to hotels and restaurants have been reduced, leading to shortages in several major cities. The sudden drop in supply has raised concerns within the hospitality industry.

Restaurant associations in Maharashtra and Karnataka have warned that food establishments may be forced to shut operations within days if supplies are not restored. Industry representatives say the disruption is already affecting operations in Mumbai and Bengaluru.

Hospitality Sector Raises Alarm

According to media reports, Vijay Shetty, president of the India Hotels and Restaurant Association, said the shortage is spreading rapidly and could soon halt operations across the sector.

He said, "If this shortage continues, all restaurants in Mumbai will be closed in the next two days."

Shetty added that the association has written to Union Petroleum Minister Hardeep Singh Puri and is also in touch with Maharashtra Civil Supplies Minister Chhagan Bhujbal.

Restaurant owners claim that the supply of commercial LPG has largely stopped since Sunday, while domestic cylinders are being delivered two to eight days after booking.

Supply Hit By Strait Of Hormuz Tensions

India imports nearly 90 per cent of its LPG requirements from the Middle East. With tensions escalating in the region, the number of ships passing through the Strait of Hormuz has declined, affecting supplies.

Amid the limited availability, the government has decided to prioritise domestic consumers. Officials say hotels and restaurants have alternative options such as large electric ovens, piped natural gas (PNG) and induction cooktops, while households largely depend on 14.2-kg LPG cylinders.

Oil marketing companies including Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum have therefore been instructed to ensure priority supply for household cooking gas.

Measures To Stabilise Supply

Officials said the waiting period for LPG delivery has been increased from 15 days to 25 days to prevent hoarding by consumers.

Sources also indicated that India is exploring alternative suppliers to stabilise LPG availability, including possible imports from Algeria, Australia, Canada and Norway.

In addition, oil marketing companies have been asked to increase LPG production and adjust their product mix to better manage the current demand.