New Delhi | RBN News
The ongoing conflict in Iran and the resulting disruption in energy supply routes have begun to affect everyday life in India, particularly the hospitality sector. Restaurants and hotels across several major cities, including Mumbai, Bengaluru and Chennai, are facing operational challenges due to a shortage of commercial LPG cylinders used for cooking.
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The crisis is linked to disruptions around the Strait of Hormuz, a critical global energy transit corridor through which a significant portion of India’s LPG imports pass. With the conflict affecting shipping routes and supply chains, the availability of cooking gas for commercial establishments has become increasingly uncertain.
Industry bodies warn that if the situation persists, restaurants may be forced to reduce menu offerings, shorten operating hours, or temporarily shut down operations.
Strait of Hormuz Disruption and India’s LPG Dependence
The Strait of Hormuz is one of the world’s most important maritime energy chokepoints. A large share of global oil and gas shipments pass through this narrow waterway connecting the Persian Gulf to international markets.
India relies heavily on imported LPG to meet domestic demand. According to official estimates:
- India consumes approximately 31 million tonnes of LPG annually
- More than 60% of LPG demand is met through imports
- Nearly 85–90% of these imports transit through the Strait of Hormuz
With tensions in the region affecting shipping logistics, supply disruptions have begun to ripple across the Indian market.
The impact is particularly visible in the supply of commercial LPG cylinders, which are widely used by hotels, restaurants and food establishments.
Restaurants and Hotels Face Severe Operational Challenges
While LPG is primarily used for household cooking, the hospitality sector also depends heavily on commercial LPG cylinders for daily kitchen operations.
Approximately 87% of India’s LPG consumption is used in households, while the remaining share is used by businesses such as restaurants, hotels and catering establishments.
Unlike domestic kitchens, many restaurants lack alternative cooking systems such as piped natural gas (PNG) connections or large-scale electric cooking infrastructure.
As a result, any disruption in LPG supply directly affects food preparation and restaurant operations.
Industry representatives warn that continued shortages could lead to higher food prices or temporary removal of certain items from restaurant menus.
Mumbai Restaurants Warn of Shutdowns
The crisis appears particularly severe in Mumbai.
The AHAR (Association of Hotels and Restaurants), which represents hospitality establishments in the city, has stated that around 20% of restaurants and hotels have already shut down due to LPG shortages.
The association has also warned that up to 50% of restaurants may close within the next two days if gas supplies are not restored.
Several eateries in busy commercial areas such as Dadar and Andheri have reportedly begun reducing menu options to conserve available cooking gas.
Restaurant operators have also shortened operating hours to extend remaining cylinder stocks.
According to industry representatives, commercial LPG deliveries have been largely halted since the weekend, forcing establishments to rely on limited reserves.
Bengaluru Restaurants Report Similar Problems
In Karnataka’s capital, Bengaluru, restaurant owners are also facing uncertainty due to declining LPG availability.
The Bangalore Hotels Association has indicated that restaurant operations across the city could be significantly affected.
One example is the well-known breakfast establishment Vidyarthi Bhavan, which has warned it may have to suspend operations if fresh gas supplies do not arrive soon.
According to the restaurant’s owner, the remaining LPG stock may only last for a short period.
To conserve gas, kitchen operations have reportedly been scaled down, including reducing the number of cooking stations in use.
Chennai Restaurants Forced to Cut Operations
Restaurants in Chennai are experiencing similar supply disruptions.
The Chennai Hotel Association has written to Union Petroleum Minister Hardeep Singh Puri stating that distributors have stopped supplying commercial LPG cylinders due to limited stock.
The association said the shortage has already forced several restaurants to temporarily close.
Some establishments have responded by reducing menu offerings and limiting operational hours.
Restaurants that depend heavily on LPG for large-scale cooking have been among the most affected.
Government Response to LPG Shortage
The central government has stated that there is no nationwide shortage of LPG cylinders but has taken steps to manage distribution and prevent supply disruptions.
One key measure involves prioritising LPG supplies for domestic household consumption.
The government has also invoked provisions under the Essential Commodities framework to ensure uninterrupted supply for residential use.
Additional steps taken include:
- Increasing the LPG booking cycle from 21 days to 25 days
- Directing refineries to maximise LPG production
- Monitoring distribution through oil marketing companies
The government has also constituted a committee of senior officials from oil marketing companies to review supply requests and address logistical challenges.
Impact on LPG Prices
Amid the supply pressures, LPG prices have also seen adjustments.
The price of a domestic LPG cylinder has increased by approximately ₹60, taking the cost in Delhi to around ₹913.
Meanwhile, the price of commercial LPG cylinders, which are used by restaurants and hotels, has increased by approximately ₹114.5.
Industry bodies warn that sustained price increases and supply shortages could lead to higher food costs for consumers.
Restaurant Industry Raises Concerns
The National Restaurant Association of India (NRAI) has said that although the government has clarified that there is no formal ban on supplying commercial LPG cylinders, the ground-level situation remains difficult.
According to the association, distributors in several regions have informed restaurant owners that they are unable to supply cylinders due to limited stock.
Industry representatives say the hospitality sector may require targeted intervention to maintain operations if supply disruptions continue.
What Happens Next
The situation remains dependent on developments in the West Asia conflict and the stability of shipping routes through the Strait of Hormuz.
If supply lines remain disrupted, LPG availability could continue to fluctuate, affecting restaurants and food establishments in multiple cities.
Government agencies and industry groups are expected to monitor the situation closely while working to stabilise supply chains.
For now, restaurant owners across several Indian cities remain cautious, attempting to manage limited LPG stocks while awaiting clarity on future supplies.
