India is facing a sudden shortage of commercial LPG cylinders across several major cities, including Bengaluru, Mumbai, Pune, Chennai and Kolkata, forcing thousands of restaurants and small eateries to scale down operations or temporarily shut kitchens. The supply disruption, linked partly to tightening global LNG availability amid the escalating West Asia conflict, has pushed the Union government to step in and regulate gas distribution under the Essential Commodities Act.
The move comes as authorities attempt to prevent fuel shortages for households while commercial users—particularly the hospitality sector—struggle with reduced cylinder deliveries and rising costs.
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Centre Steps In to Regulate LPG Supply
The Union government on Monday invoked the Essential Commodities Act, 1955, allowing authorities to control the distribution of natural gas and LPG during the ongoing supply disruption.
Officials said gas allocations to fertiliser plants and several industrial sectors have been cut so that priority supply can be maintained for domestic piped natural gas (PNG), compressed natural gas (CNG) used in transport, and LPG production for households.
The decision follows growing concerns that global energy supplies could tighten further as geopolitical tensions intensify in West Asia. Outages in Qatar—India’s largest LNG supplier—have already begun affecting global supply flows.
Prime Minister Narendra Modi also held a high-level meeting with petroleum minister Hardeep Singh Puri and external affairs minister S. Jaishankar to assess the evolving geopolitical situation and its potential impact on India’s energy security.
Restaurants Among the Worst Hit
The hospitality sector is bearing the brunt of the LPG shortage. Across multiple cities, restaurants say deliveries of commercial LPG cylinders have slowed or stopped entirely.
In Bengaluru, several eateries reported that they had not received commercial cylinders for two consecutive days. As a result, many restaurants have trimmed their menus to conserve fuel. Gas-heavy dishes such as pooris, vadas and deep-fried snacks are being temporarily removed, while kitchens prioritise items that require less cooking gas.
Some establishments in east Bengaluru said cylinder supplies had dried up completely, forcing operators to pay nearly double the normal price through unofficial channels.
Commercial LPG prices have also climbed sharply, with the cost of a 19-kg cylinder reaching nearly ₹1,900 after multiple revisions in March.
Chennai Hotels Begin Temporary Shutdowns
The impact is particularly visible in Chennai, where several small restaurants have temporarily closed due to delayed cylinder deliveries.
Industry representatives say many popular dishes served in local eateries require long cooking times, making it difficult to operate with limited fuel.
The Chennai Hotels Association has reportedly contacted both the central government and Tamil Nadu chief minister M.K. Stalin, requesting urgent intervention to stabilise LPG supplies. The city alone has more than 10,000 hotels and restaurants that depend heavily on a steady flow of commercial cylinders.
Mumbai and Pune Restaurants Scale Back Operations
The shortage has also hit the hospitality sector in Mumbai, where industry groups estimate that around 20% of hotels and eateries are already partially or fully shut.
Restaurant associations warn that if supplies do not improve soon, as many as 50–60% of establishments could temporarily close.
High-flame dishes such as Chinese stir-fry and tawa-based meals are among the first items being removed from menus as restaurants try to conserve gas.
In Pune, about 100 restaurants out of nearly 1,200 establishments have already been affected. Several kitchens have stopped operations after LPG supplies were suspended earlier this week. Industry insiders say the shortage has also triggered black-marketing of commercial cylinders in the region.
Supply Cuts for Industries in Gujarat
To ensure households continue receiving LPG cylinders, several states have begun cutting gas supply to industrial users.
The Gujarat government confirmed that gas supply to industries has been reduced by around 50%. Fertiliser plants and milk processing units are also facing cuts of about 40%.
Officials said the move was taken in coordination with the Union government to maintain stable LPG availability for domestic consumers.
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Panic Buying and Black Market Activity
In Kolkata, the situation has triggered panic buying of LPG cylinders.
Bookings from Indian Oil Corporation surged from around 2.5 lakh within 48 hours on March 5 to nearly 5.8 lakh by March 9. Combined bookings from Indian Oil, Bharat Petroleum and Hindustan Petroleum rose from 3.9 lakh to over 7.5 lakh cylinders during the same period—far above the state’s normal daily demand of roughly five lakh cylinders.
Authorities say the spike has also encouraged illegal diversion of LPG cylinders, including those meant for beneficiaries of the Pradhan Mantri Ujjwala Yojana.
The shortage has even affected transport in the city, with auto-LPG scarcity leading to long queues at fuel pumps and reducing the number of auto-rickshaws operating on some routes.
Hotels Explore Alternatives
With LPG supplies uncertain, hotels in several states are now exploring temporary alternatives.
In Madhya Pradesh, hoteliers from Bhopal, Indore, Gwalior and Jabalpur held an emergency meeting after many establishments reported having gas stocks that may last only five days.
Restaurants in Telangana and Kerala are also preparing contingency plans, including switching to electric cooking systems, limiting menus, or relying on reheated food items.
However, industry representatives say most kitchens are not designed for a sudden transition to electric cooking, making it difficult to adapt quickly.
Government Monitoring Situation
Officials say the government is closely monitoring global LNG supply and exploring additional imports from countries such as Canada and Australia to stabilise domestic fuel availability.
Authorities have also urged the public not to panic-buy LPG cylinders, warning that hoarding could worsen the situation.
For now, households remain the top priority in gas allocation, but unless international supply conditions improve soon, India’s restaurant and hospitality sector may continue facing operational challenges in the coming days.
