Despite the Indian government’s assurances of sufficient oil and gas resources, a growing LPG shortage is impacting hotels and eateries across multiple states, including Maharashtra, Karnataka, and Tamil Nadu, creating challenges for students, patients, travelers, and others who depend on these establishments for meals. Panic has spread after the Bengaluru Hotels Association announced that restaurants in the city would close starting tomorrow due to a halt in commercial gas cylinder supply effective March 9, 2026.
Industry representatives have reported that the shortage of commercial cylinders is already being felt in cities like Mumbai and Chennai, where eateries heavily depend on commercial cooking gas. The government has prioritized LPG supplies for households to ensure availability, while a panel of three Executive Directors from Oil Marketing Companies has been established to address requests for commercial LPG supply.
Karnataka’s Deputy Chief Minister D K Shivkumar stated that the entire hotel and commercial sector in the state is affected, with the Hotel Association noting that only about 10 percent of Bengaluru’s hotels received LPG supplies on March 9, allowing them to operate only until the afternoon of March 10. In Maharashtra, the Mumbai Hotels and Restaurants Association reported that around 20 percent of hotels have already shut down, warning that nearly 50 percent may follow suit if the supply situation does not improve. LPG dealers have noted that delivery delays for cooking gas are now between two to eight days, with commercial cylinder supply completely halted.
The LPG crisis has also impacted crematoriums reliant on LPG. In Pune, Municipal Commissioner Naval Kishor Ram reported that 18 out of 27 crematoriums in the city are temporarily closed due to the gas supply disruption. In Chennai, Tamil Nadu, hotel associations have urgently appealed to the Prime Minister for restoration of LPG supplies, as the hospitality sector faces severe shortages.
In Rajasthan, oil marketing companies have ceased new bookings for commercial LPG cylinders, affecting food vendors and restaurants. Reports from Kolkata in West Bengal indicate similar supply issues affecting the hospitality sector. Other states, including Telangana and Uttar Pradesh, are also experiencing shortages, leading to long queues and panic buying, although disruptions in household supply have not been widely confirmed.
The crisis poses a significant threat to the hospitality industry, with warnings of mass shutdowns if the situation is not resolved promptly. Small businesses, including street food vendors and bakeries, are also feeling the effects, and the food delivery ecosystem could be impacted as well. The states most affected include Karnataka, Maharashtra, Tamil Nadu, Rajasthan, and West Bengal, where LPG penetration is notably high.
The Union Ministry of Petroleum and Natural Gas has instructed refineries to increase LPG production and redirect additional supplies for domestic use. The interval for LPG refill bookings has been extended from 21 to 25 days to curb hoarding and black marketing. While the government maintains that household supply is being protected, the crisis has already caused significant disruptions. LPG prices have risen by approximately Rs 60 for a 14.2 kg cylinder in major cities, with commercial cylinder prices increasing by Rs 114.50 to Rs 115. The Centre has invoked the Essential Commodities Act to manage supply and prevent hoarding, and is exploring additional LPG imports from the US and Canada. Some state governments have initiated measures, such as Pune Municipal Corporation transitioning to electric crematoriums, although LPG supply is primarily managed by Oil and Marketing Companies and the Union Ministry of Petroleum.
