Mumbai's bustling food industry is facing a serious challenge as a sudden shortage of commercial LPG cylinders has begun disrupting restaurant and hotel operations across the city.
The situation has already forced around 20% of hotels and restaurants in Mumbai to shut down, and industry bodies warn that nearly half of the city's eateries could temporarily close within the next two days if the gas supply does not improve.
Restaurants in Mumbai rely heavily on commercial LPG cylinders for daily cooking, and any disruption in supply can quickly bring kitchen operations to a halt. Over the past two days, deliveries of commercial gas cylinders have slowed down significantly, leaving many establishments struggling to continue operations.
Sudden LPG Disruption shakes the Food Industry
The AHAR (Indian Hotel and Restaurant Association) clarified that no collective decision has been taken to shut down hotels across Mumbai. Instead, individual restaurant owners are deciding whether to keep their establishments open or temporarily close, depending on the amount of LPG stock they currently have.
Many restaurants that remain open have already begun reducing their menu options or limiting operations due to uncertainty over gas availability. Some eateries have also started adjusting their prices to cope with rising operational costs and limited resources.
The problem is not limited to Mumbai. Similar concerns are emerging in Bengaluru and Chennai, where restaurant associations have raised alarms about the shortage of commercial LPG cylinders.
In Bengaluru, hotel associations warned that restaurants could shut down from March 10 if gas supplies do not resume soon. Industry representatives say oil companies had earlier assured an uninterrupted gas supply for 70 days, making the sudden Disruption a major blow to the hospitality sector.
Meanwhile, in Chennai, the situation is becoming increasingly critical. Restaurant association president M Ravi has written to Prime Minister Narendra Modi, urging immediate intervention to ensure uninterrupted LPG supply for the food industry.
He warned that the crisis could severely affect hospitals, IT parks, college hostels, train passengers, and business travellers, all of whom rely on large-scale food services every day.
The LPG shortage comes at a time when global energy markets are already under pressure due to the ongoing West Asia conflict, which has disrupted fuel shipments and raised concerns over supply chains. These global pressures have begun to affect LPG distribution across several Indian cities.
Compounding the issue, household LPG prices have increased by Rs 60. In contrast, commercial LPG cylinder prices have risen by Rs 115, adding further strain on restaurants already struggling with supply shortages.
In response to the crisis, the Ministry of Petroleum and Natural Gas announced on X that it has instructed oil refineries to increase LPG production. The additional production will be directed primarily toward domestic LPG supply. The government has also introduced a 25-day inter-booking period to prevent hoarding and black marketing.
Authorities have said that imported LPG supplies will be prioritised for essential sectors, including hospitals and educational institutions. However, many restaurant owners say the current shortage is already affecting their ability to operate normally.
In cities like Coimbatore, restaurants such as the well-known Annapoorna hotels have started placing notices about shortened menus. In contrast, several eateries across southern cities are either cutting down on dishes or raising prices to manage limited gas supplies.
How Long Will the Crisis Continue?
If the supply disruptions continue, thousands of eateries across India could be forced to temporarily shut down, affecting both business owners and the millions of people who depend on them every day.
Restaurant owners and industry leaders are now hoping that the government's intervention and increased LPG production will soon stabilise the situation.
With menus shrinking, prices rising, and restaurants struggling to stay open, the big question remains - how long will people and the food industry be able to manage this LPG crisis?
