India’s hospitality sector recently faced a shortage of commercial LPG cylinders used by restaurants and hotels. Distributors prioritised supplies for hospitals and educational institutions, tightening availability for the hospitality industry.
The government said there was “no need to panic” and that steps were being taken to stabilise supply and prevent disruptions.
At the same time, rising tensions in the Middle East disrupted energy shipping routes. India imports over 60% of its LPG from Gulf countries such as Saudi Arabia, Qatar and the UAE. Most shipments pass through the Strait of Hormuz, a narrow sea route between Iran and Oman that connects the Persian Gulf to the Arabian Sea.
Domestic LPG cylinders used in homes are supplied through a separate distribution system. The disruption mainly affected commercial cylinders used by businesses.
Reports from several cities showed long queues outside LPG refill centres, while some restaurants temporarily shut kitchens or reduced menus after delays in commercial LPG deliveries.
Why Restaurants Felt The Pressure
Restaurants rely on commercial LPG cylinders to run their kitchens. When supply tightened, many struggled to secure regular deliveries.
According to Times Now, several restaurants in Mumbai including Hotel Free India at Jacob Circle, Nanumal Bhojraj, Shaan Chinese and Udupi Niketan in Bombay Central reduced menu options and shortened service hours to manage fuel use.
Industry body National Restaurant Association of India (NRAI) warned that prolonged shortages could disrupt restaurant operations across major cities.
Did It Affect Household LPG Supply?
Reports also indicated temporary delays in LPG deliveries in some cities.
According to The Times of India, residents in cities such as Ludhiana reported longer waiting times for LPG refills. Authorities introduced measures such as a 25-day gap between bookings to manage supply and prevent hoarding.
Delivery times in some areas took longer than usual, prompting authorities to manage bookings more carefully.
The Risk Of Black Marketing
Tight supply also led to reports of unauthorised LPG sales.
According to The Indian Express, some hotels and commercial users turned to unauthorised sellers to secure cylinders. In some cases, businesses paid higher prices to keep kitchens running.
These unofficial transactions further strained the regulated supply chain.
The Impact Went Beyond Restaurants
The disruption also affected other sectors that rely on LPG.
Some LPG auto-gas stations in Bengaluru reportedly shut operations, while prices for LPG auto fuel increased.
The Indian Railway Catering and Tourism Corporation (IRCTC) also asked catering units to temporarily switch to electric cooking methods such as microwaves and induction stoves.
How Much LPG India Uses
India consumes over 30 million tonnes of LPG every year.
About 87% is used by households for cooking, while the rest is used by commercial establishments such as hotels, restaurants and catering services.
What The Government Did
Several state leaders, including Siddaramaiah and MK Stalin, urged the central government to ensure steady supplies of commercial LPG cylinders.
The Centre invoked provisions under the Essential Commodities Act and asked oil companies to increase LPG availability.
Prime Minister Narendra Modi also held a review meeting with Petroleum Minister Hardeep Singh Puri and External Affairs Minister S Jaishankar to assess the situation.
The oil ministry also formed a three-member committee with officials from major oil marketing companies to address supply issues and review requests from commercial users.
The National Restaurant Association of India advised restaurants to conserve LPG and switch to “crisis menus”.
The association suggested steps to reduce LPG use, including:
• Removing slow-cooked, fuel-intensive dishes from menus
• Soaking grains in advance to reduce cooking time
• Batch-cooking to minimise burner use
• Using pressure cookers and lids to cut gas consumption
• Temporarily switching to electric appliances such as induction stoves, microwaves and electric rice cookers where possible
#WATCH | Delhi | On PM Narendra Modi meeting Union Ministers Hardeep Puri and S Jaishankar over commercial LPG cylinder shortage, BJP MP Darshan Singh Choudhary says, "The Prime Minister is capable of dealing with any sort of problem... The situation in the country is under… pic.twitter.com/B2EpTStXbo
— ANI (@ANI) March 11, 2026
