India’s hospitality industry is raising urgent concerns after a sharp disruption in the supply of commercial liquefied petroleum gas (LPG), leaving many restaurants and hotels with barely a few days of fuel reserves. Industry bodies have warned that continued shortages could force widespread operational disruptions or temporary shutdowns across the sector.
The supply concerns emerged after escalating tensions involving the U.S.–Israel conflict with Iran disrupted shipping routes in the Gulf region, particularly around the critical Strait of Hormuz. The situation has pushed up global energy prices and affected the flow of fuel exports from key producers such as Qatar and Saudi Arabia.
India’s Heavy Dependence on LPG Imports
India is the world’s second-largest importer of LPG, relying on overseas suppliers for a significant share of its domestic consumption. The country imports nearly two-thirds of the LPG it uses annually, making it vulnerable to global supply disruptions.
In response to the situation, the Ministry of Petroleum and Natural Gas has invoked emergency provisions and instructed domestic refiners to increase LPG production for local use.
However, the sudden shift has created supply constraints for industries that rely heavily on commercial LPG cylinders, particularly restaurants and hotels.
Restaurants Warn of Limited Fuel Stock
Several restaurant operators across major cities say they currently have only a few days of LPG reserves available.
According to Bert Mueller, founder of the Mexican fast-casual chain California Burrito, many outlets are actively implementing contingency plans.
“We have LPG stock for about two days. We are conserving gas and installing induction stoves at certain outlets,” Mueller said. The restaurant chain operates more than 100 stores across cities such as Bengaluru, Chennai, Delhi, and Noida.
Operators say they are exploring alternatives such as electric cooking systems, but switching infrastructure quickly across multiple outlets is challenging.
Industry Bodies Seek Government Intervention
Two major hospitality industry associations have urged the government to intervene and ensure adequate fuel supplies.
The National Restaurant Association of India (NRAI), which represents more than half a million restaurants nationwide, has warned that prolonged LPG shortages could lead to widespread closures.
In a letter to the Ministry of Food Processing Industries, the association stated that the restaurant sector depends almost entirely on commercial LPG cylinders for daily operations.
“Any disruption in LPG supply will have catastrophic consequences for restaurant businesses,” the association said.
The Federation of Hotel and Restaurant Associations of India has also appealed to the government for immediate assistance to stabilise supplies.
Government Reviews Industry Requests
The government has formed a review panel to examine requests from the hospitality sector regarding LPG supply allocations.
Authorities are assessing whether additional fuel supply channels can be created or prioritised for industries heavily dependent on LPG, including restaurants, hotels and food processing units.
Bengaluru Restaurants Already Facing Shortages
In several cities, restaurant operators say the situation is already affecting deliveries.
In Bengaluru, multiple restaurant owners reported delayed or cancelled LPG cylinder deliveries.
Manish V. Shetty, who runs the Udupi Food Hub restaurant chain, said one of his outlets did not receive its scheduled gas cylinder delivery.
“Thankfully, an older vendor helped us because we pay immediately rather than on credit,” Shetty explained.
Restaurant owners also reported rising costs of essential cooking ingredients such as sunflower oil, adding further pressure on operating margins.
Limited Storage Makes Situation Riskier
Hospitality operators typically do not stockpile large numbers of LPG cylinders due to safety regulations and storage risks. Most restaurants rely on frequent deliveries to maintain daily operations.
According to Veerendra Kamat of the Bengaluru Hotels Association, this dependency makes the sector particularly vulnerable during supply disruptions.
“It’s a very serious situation. Many gas suppliers have stopped deliveries,” said Ananth Narayan from the Bengaluru chapter of the NRAI.
Even restaurants that currently have spare cylinders may only be able to operate for one to two weeks if supply chains are not restored soon.
Rising LPG Prices Add to Pressure
Fuel suppliers in India have already increased LPG prices for the first time in nearly a year due to rising import costs caused by the conflict.
The situation worsened after LNG production disruptions in Qatar following regional military tensions.
Higher fuel prices and supply uncertainty are now adding to operational challenges for restaurants that are already dealing with rising food costs and tight margins.
Hospitality Sector Braces for Uncertainty
For India’s hospitality industry, the LPG supply crunch could have serious consequences if the situation continues.
Restaurants are exploring alternative cooking systems, conserving fuel and negotiating with suppliers, but industry leaders say government support may be necessary to avoid widespread disruptions.
If global energy supply routes remain unstable, the hospitality sector may face further cost pressures and operational risks in the coming weeks.
