India’s hospitality sector is raising alarm over shortages of commercial cooking gas cylinders even as the government maintains that domestic LPG supply is being safeguarded through emergency production measures and distribution controls.
The Ministry of Petroleum and Natural Gas has said it has taken several steps to stabilise supply following geopolitical disruptions to global energy flows. However, hotel and restaurant associations across major cities say the ground situation remains difficult, with shortages already affecting operations in parts of the country.
The contrast between official assurances and industry concerns highlights the challenges of managing fuel supply during a period of global energy volatility.
Government Steps In To Protect Domestic LPG Supply
According to the Ministry of Petroleum and Natural Gas, steps have been initiated to ensure that household LPG supply remains uninterrupted despite pressures on the broader energy supply chain.
“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,” the ministry said.
The government has also introduced additional controls aimed at preventing misuse of household LPG connections.
The ministry said a 25-day inter-booking period has been introduced to discourage hoarding and prevent black marketing of cylinders.
At the same time, imported LPG is being redirected to key essential services.
“Non domestic supplies from imported LPG is being prioritised to essential non domestic sectors such as Hospitals and Educational institutions,” the ministry said in its statement.
For other sectors that rely on commercial LPG, the government has created a review mechanism.
“For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs have been constituted to review the representations for LPG supply to restaurants/hotels/other industries,” the ministry added.
These measures reflect the government’s attempt to balance household energy needs with the requirements of commercial sectors that depend heavily on LPG for day-to-day operations.
Hospitality Industry Reports Supply Disruptions
Despite these assurances, hospitality industry bodies say supply disruptions are already being felt in several cities.
In Bengaluru, the Bangalore Hotels Association warned that hotel and restaurant operations could face serious disruption if commercial LPG supplies do not normalise quickly, reported NDTV.
“Since the gas supply has stopped, the hotels will be closed from tomorrow,” the association said in a statement.
The group also emphasised that the hotel industry performs an essential public function, serving daily meals to large segments of the population.
“Since the hotel industry is an essential service, common people, students, and medical professionals, who rely on the hotels for daily meals, will be affected,” the association said.
The association added that the sudden supply stoppage came despite earlier assurances from oil companies that supply would remain uninterrupted for around 70 days.
Association president PC Rao later said hotels would continue operating “till the last drop to serve people”.
Chennai And Mumbai Industry Bodies Raise Alarm
Industry representatives in Chennai have also flagged concerns about commercial LPG availability.
Chennai hotels association president M Ravi wrote to Prime Minister Narendra Modi warning that supply disruptions could affect food services relied upon by hospitals, students, travellers and businesses.
“The food industry works on a 24 x 7 basis for many hospitals who require the food to be supplied on time, besides IT Parks, students at college hostels, train and business travellers will all be affected, if the supply of commercial LPG is hindered,” Ravi said in the letter.
He also warned that banquet events scheduled by hotels and restaurants could be affected if shortages continue.
In Mumbai, the situation has already begun affecting operations.
Media reports say about 20 per cent of hotels and restaurants have suspended operations due to a shortage of commercial LPG cylinders.
Restaurants in neighbourhoods such as Dadar, Andheri and Matunga have started trimming their menus and reducing operating hours in an attempt to conserve gas supplies.
Slow-cooked dishes such as dal makhani and rava dosa are among the items being temporarily dropped by some establishments.
Industry Bodies Seek Clarification From Government
National industry groups have also stepped in to seek clarity on supply conditions.
The Federation of Hotel and Restaurant Association of India (FHRAI) wrote to Petroleum Minister Hardeep Singh Puri, highlighting what it described as “widespread disruption at the ground level”.
The association said several LPG distributors were withholding supplies while citing a government order issued on March 5.
FHRAI Secretary General Jaison Chacko urged the government to issue a clear directive ensuring the uninterrupted supply of commercial cylinders to the hospitality sector.
The National Restaurant Association of India (NRAI) echoed similar concerns.
In a statement posted on X, the body said suppliers were expressing an inability to meet the supply requirements of restaurants, which was “severely impacting” the industry.
“As per news articles, the Government has clarified that there is no ban on the supply of commercial LPG cylinders for the restaurant industry. However, the ground situation is different, with suppliers expressing inability to supply the same,” the NRAI said.
Government Maintains Situation Is Under Control
Despite these concerns, the government has sought to reassure the public about the overall energy supply situation.
Petroleum and Natural Gas Minister Hardeep Singh Puri said recently that India remains in a “comfortable position” and there is “no room for anxiety”.
“Energy imports into the country are in full flow from all non-Hormuz routes. The energy requirements of our citizens are being fully met,” the minister said.
The situation has unfolded against the backdrop of volatility in global oil markets triggered by conflict in West Asia. Crude oil prices briefly surged above $100 per barrel before easing in subsequent trading sessions.
While policymakers emphasise that essential supplies are being safeguarded, industry groups warn that commercial LPG availability remains strained in several locations.
