Restaurant owners say commercial LPG supplies have largely stopped since Sunday, while domestic cylinders are facing delivery delays ranging from two to eight days after booking.
A sudden crisis of commercial LPG cylinders has sent shockwaves across the hospitality sector, with restaurant associations in Maharashtra and Karnataka warning that eateries could shut down within days if supplies are not restored. The disruption has already begun affecting operations in Mumbai and Bengaluru, as hotels and restaurants struggle to secure cooking gas amid global supply disruptions linked to the ongoing West Asia conflict following the United States and Israel strikes on Iran.
Restaurant associations sound alarm
Vijay Shetty, president of the India Hotels and Restaurant Association, said the shortage is spreading rapidly and could soon paralyse the sector. “All restaurants in Mumbai will be shut in the next two days if this shortage continues,” Shetty said, adding that the association has written to Union Petroleum Minister Hardeep Singh Puri and is in touch with Maharashtra Civil Supplies Minister Chhagan Bhujbal.
“As of today, 10–20 percent of our members are facing problems. By tomorrow it will be 60 percent. By the day after tomorrow, it will be 100 percent impact on restaurants, forcing them to shut,” he said.
Commercial LPG supplies halted
Restaurant owners say commercial LPG supplies have largely stopped since Sunday, while domestic cylinders are facing delivery delays ranging from two to eight days after booking. “We are not finding commercial LPG cylinders. At a few places it is available but a Rs 1,750 cylinder is being sold for Rs 1,950,” said Annu Shetty, who runs Hotel Sagar in Mulund.
Household Demand Adds PressureThe supply crunch has also caused panic among households. Consumers with dual domestic connections have rushed to book refills, leading to long queues and delays at dealer outlets.
Similarly the situation has also hit Karnataka, where the Bangalore Hotels Association warned that hotel operations could be affected from March 10 due to the sudden halt in commercial LPG supplies. “Since the gas supply has stopped, the hotels will be closed from tomorrow,” the association said in a statement.
The group said the disruption would affect common people, students and medical professionals who depend on hotels for daily meals.
Government prioritises domestic supply
Government sources said oil marketing companies, Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum, have been directed to prioritise domestic household cooking gas supply amid the supply crunch. Officials said the waiting period for LPG deliveries has been extended from 15 days to 25 days in order to curb hoarding by consumers.
Sources added that India is exploring new international suppliers to stabilise LPG supplies, including potential imports from Algeria, Australia, Canada and Norway.
In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use.
The ministry has prioritised domestic LPG supply to…
— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) March 9, 2026
Centre steps in amid supply disruption
Amid growing concerns from the hospitality industry, the Ministry of Petroleum and Natural Gas said it has taken steps to stabilise LPG supply following disruptions caused by global geopolitical tensions. In a statement, the ministry said oil refineries have been directed to increase LPG production and divert the additional output for domestic consumption.
“In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use,” it said.
The government added that household LPG supply has been prioritised and a 25-day gap between cylinder bookings has been introduced to prevent hoarding and black marketing. According to the ministry, imported LPG meant for non-domestic use is currently being prioritised for essential sectors such as hospitals and educational institutions
