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LPG Shortage Hits Restaurants Across India, Many Face Closure

Kashmir Dot Com by Kashmir Dot Com
March 11, 2026
in Business, National
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Prime Minister takes the bold step of reducing the LPG cylinder price by Rs 200/ cylinder for all the LPG consumers (33 crore connections)

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New Delhi/Chennai: Restaurants across India are facing a looming crisis as the ongoing West Asia conflict disrupts global fuel supply chains, triggering a shortage of commercial LPG and forcing eateries to shrink menus, adopt alternative cooking methods and brace for possible shutdowns.

With the conflict impacting key fuel routes and supplies, the government has prioritised LPG distribution to domestic households, leading to a supply crunch for hotels, restaurants and catering establishments that rely on commercial gas cylinders for daily operations.

Industry insiders warned that the situation could lead to temporary closure of restaurants, job losses and disruption for people dependent on outside food, with many establishments reporting that their existing LPG stocks may last only one or two more days.

Across major cities including Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Lucknow, restaurateurs said they have begun cutting down on fuel-intensive dishes and introducing “low-fuel menus” to conserve gas.

A restaurateur in Chennai said the situation felt similar to the COVID-19 lockdown period for the food industry.
“For dosa, tea or coffee, the stove should receive LPG supply non-stop. We can run for one or two days with existing stock, but if commercial LPG cylinders are not supplied, we will have no option but to close operations,” he said.

Several restaurants in Tamil Nadu have already stopped preparing items such as fried rice, side dishes and appam, which require more cooking gas.

In Mumbai, Indian Hotel & Restaurant Association (AHAR) President Vijay Shetty said around 20 per cent of hotels have already shut down due to LPG shortages.

Maharashtra Food and Civil Supplies Minister Chhagan Bhujbal warned that commercial LPG supplies could decrease further as oil companies have been directed by the Centre to prioritise domestic consumers.

In Kolkata, Piyush Kankaria, head of the National Restaurant Association of India’s Kolkata chapter, said nearly 40 per cent of restaurants may face immediate disruption, while another 30–40 per cent could operate only for a few more days due to limited LPG stocks.

In Delhi, some restaurants have started purchasing electric cooking appliances and revising menus to reduce dependence on LPG. However, operators noted that switching to electric equipment is not always practical because many dishes require traditional gas-based cooking methods.

Foods such as dal makhni, rajma, biryani, nihari and qorma typically require slow cooking for several hours, making them difficult to prepare using alternative methods.

In Bengaluru, hoteliers warned that the crisis has reached a serious stage, with some restaurants already considering temporary closure if supplies are not restored soon.

Restaurant owners in other cities including Puducherry, Bhubaneswar and Lucknow echoed similar concerns, saying many establishments may soon run out of cooking fuel.

Industry bodies have urged the Centre to intervene urgently to ensure adequate commercial LPG supply, warning that prolonged shortages could lead to cancellation of hotel bookings, disruption to tourism and loss of thousands of jobs.

India consumes about 31.3 million tonnes of LPG annually, with nearly 87 per cent used in households and the remaining by commercial establishments. Around 62 per cent of the country’s LPG demand is met through imports.

The ongoing conflict has disrupted shipments through the Strait of Hormuz, a critical maritime route through which India receives 85–90 per cent of its LPG imports from West Asian countries, including Saudi Arabia and Qatar. (PTI)

Tags: IndiaLPGrestaurantsShortageTrending
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