LPG Shortage Shuts 30% of Hotels and Restaurants Across India

A growing LPG shortage is disrupting India’s hospitality sector, affecting hotel and restaurant kitchens across several cities. Industry bodies report that nearly 30 percent of hotels and restaurants have shut operations due to the limited availability of commercial LPG, highlighting the scale of the supply crisis.

Representatives from industry groups including the Federation of Hotel and Restaurant Associations of India (FHRAI) and the Hotel and Restaurant Association of Western India (HRAWI) said the shortage of commercial LPG cylinders has disrupted daily operations for hospitality businesses that depend on gas for cooking. With supplies limited and prices increasing, many establishments are finding it difficult to continue normal service.

Key Highlights

• LPG shortage forces closure of 30% hotels and restaurants in India
• Hospitality sector hit as commercial LPG supply disruptions grow
• Industry bodies urge government to address LPG distribution crisis

The impact is already visible in multiple cities where hotels and restaurants have either closed temporarily or reduced operations. Some establishments have limited their menus to dishes that require less cooking fuel or shorter preparation time. Items such as rotis, dosas, and deep-fried foods that require sustained heat are being reduced or removed from menus as kitchens attempt to manage the available gas supply.

Industry representatives say the issue is linked to LPG supply constraints and distribution priorities. Commercial establishments report difficulty in obtaining LPG cylinders as domestic LPG supply continues to receive priority. India depends on imports for a significant portion of its LPG imports, and global supply disruptions have added pressure on availability. Limited allocation of commercial cylinders has affected the hospitality sector across several regions.

Restaurant owners and hotel operators warn that continued shortages could place further pressure on the industry. Reduced operations directly affect revenue and could lead to job losses and hospitality sector supply chain disruptions that impact vendors, food suppliers, and service staff connected to the sector. Smaller restaurants and independent eateries are particularly affected because their operations rely on a steady supply of LPG cylinders.

Hospitality associations have urged authorities to address the supply issue and ensure consistent distribution of commercial LPG cylinders to hotel kitchens and restaurants. Industry representatives are also calling for monitoring of distribution channels to prevent diversion and black market LPG cylinders sales.

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Sector leaders say reliable LPG supply remains essential for the functioning of hotel and restaurant kitchens. Without immediate improvement in supply availability, many establishments may continue to limit operations or remain temporarily closed, affecting daily food services and employment within the hospitality industry.