LPG Crisis Looms

Steps Govt is taking

Government officials said several steps have been taken to prevent hoarding and stabilise supply.

The LPG booking interval has been extended from 21 to 25 days.

Refineries have been instructed to increase LPG production.

Authorities have also directed oil marketing companies (OMCs) to prioritise domestic LPG connections over commercial users, emphasising that household consumers will remain the top priority.

Hotels and restaurants across India are facing the threat of temporary closures

From Bengaluru to Bhubaneswar, Chennai to Mumbai restaurants and hotels are facing the threat of temporary closures due to the lack of adequate supply of commercial (liquefied natural gas) LPG cylinders due to the ongoing US-Israeli strikes inside Iran and Tehran's sweeping retaliation across the region.

Close to 90% of India’s LPG import and 30% of natural gas requirements are routed through Strait of Hormuz, which is now shut by Iran leading to the crisis. India consumes about 31.3 million tonnes of LPG annually, with around 62% imported.

The National Restaurant Association of India (NRAI), Indian Hotel and Restaurant Association (AHAR), Bengaluru Hotels Association, Chennai Hotels Association, Chennai Tea Shops Association, the Hotel & Restaurant Association of Odisha (HRAO), and several hoteliers have warned that non-availability of cooking gas would force many units to shut their shops. Around 20% of the hotels and restaurants in Mumbai have shut down.

Hyderabad facing crunch

The cooking fuel shortage has affected paying guest accommodations and hostels in Hyderabad. Managers and supervisors of large paying guest facilities, particularly in the IT hubs such as Gachibowli, Kukatpally and Madhapur, fear disruption to meals preparation. They estimate that about 74,000 hotels in Hyderabad reportedly have gas supply only for the day, and if supplies do not resume immediately, many establishments could shut temporarily.

Hotels typically require 15–20 cylinders a day, depending on their size and menu. The shortage could also affect hostels and paying guest accommodations, which depend on commercial gas cylinders for daily cooking. At Pista House, Bhanuprasad, manager of the Uppal branch, confirmed that supplies have become unpredictable.

“For the last two to three days there has been shortage and today it is more,” he added.

TSHA urges Uttam to ease restrictions

The Telangana State Hotels Association (TSHA), representing hotels, restaurants, cafes, bars, caterers and sweet shops across the state, has appealed to Minister for Civil Supplies N Uttam Kumar Reddy, to immediately reduce restrictions on liquefied petroleum gas (LPG) supply to commercial establishments. In a letter submitted on Tuesday, the association urged treating hotels and restaurants as essential service providers to avert a crisis akin to those witnessed in Bengaluru, Chennai and Mumbai.

"Due to the present restrictions on the supply of commercial LPG cylinders, many hotels and restaurants are facing serious operational difficulties," the letter states. These challenges threaten temporary closures, widespread unemployment among workers and disruptions in food services to the public, potentially mirroring fuel shortages that paralyzed urban centers in neighboring states. The association warns that without intervention, Hyderabad could face similar chaos, exacerbating economic strain in a post-pandemic recovery phase.

TSHA President Venkata Reddy emphasized the urgency: "Our members provide vital nutrition to thousands who depend on us. Secretary C.H. Venugopal and Treasurer N.K. Rama Murthy Bhat echoed the call, stressing the need for prioritized allocations to prevent broader ripple effects on employment and consumer access.

Andhra Pradesh hotels warn of shutdown

The Andhra Pradesh Star Hotels Association on Tuesday urged the state government to ensure uninterrupted supply of commercial LPG cylinders as oil marketing companies ration supplies amid disruptions linked to the West Asia conflict.

An Indian Oil Corporation source told PTI that commercial LPG supplies are being restricted to prioritise domestic users, while the Centre has restructured gas allocations to meet changing energy demands.

“Coordinate with LPG distributors and authorities to ensure steady availability of commercial LPG cylinders for the hospitality sector,” association president R V Swamy wrote to Civil Supplies Minister N Manohar. He said the sector relies heavily on LPG for daily operations and supports tourism, especially in Visakhapatnam and Tirupati. Citing a Ministry of Petroleum and Natural Gas order, Swamy said distributors have warned of possible supply constraints,

raising concern among hotels, restaurants, catering services and banquet operators. Vijayawada distributor Sumana Shankar said domestic LPG supply remains unaffected, but commercial supplies have stopped. Hotelier Kumar Agarwal said only one-third of stock is available. Without timely supply, many hotels could shut, smaller units are most vulnerable, and food prices may rise up to 20 per cent.