MP Hoteliers Seek Stable LPG & PNG Supply Amid Price Hikes

A delegation from the Hotel and Restaurant Association of Western India (MP Committee) and the Madhya Pradesh Hoteliers Association met Additional Chief Secretary for Food and Civil Supplies, Rashmi Arun Shami, at Vallabh Bhawan, Bhopal, to address critical issues regarding commercial LPG and PNG supply in the state.

Led by Sumit Suri, president of the MP Hoteliers Association and chairman of HRAWI MP, the delegation highlighted rising PNG prices, delays in obtaining new connections, and a recent rate hike implemented after March 9.

Key Highlights

• MP hoteliers demand restoration of commercial LPG and PNG supply
• Rising prices and delays affect hotels, restaurants, and employees
• Government assures instructions issued; supply expected to normalize soon

Also Read: LPG Shortage Shuts 30% of Hotels and Restaurants Across India

The groups urged the immediate restoration and regularization of commercial gas supply in line with Central Government directives.

The delegation requested clear instructions be issued to district magistrates to ensure uninterrupted gas supply to hotels, restaurants, and caterers.

Suri emphasized that irregular supply and increased costs were affecting employees and the overall hospitality sector in Madhya Pradesh. Rashmi Arun Shami assured that instructions are being issued and that supply is expected to normalize soon.

Representatives from NRAI included Abhishek Bahety, Sagar Gaire, Vishnu Sharma, and Kush Manohar. FHRAI was represented by Sumit Suri, Sapan Arora, and Dinesh Dawar, while Tejkul Paali and Jastej Paali attended on behalf of the Bhopal Hotel Association.

Also Read: LPG Shortage Hits Restaurant Operations, Retail Rentals Riskan 

The associations reiterated their commitment to promoting tourism, employment, and economic activity, stressing that coordinated action between government departments and oil and gas companies is vital to maintain stable supply chains and smooth hospitality operations across the state.

Additional Context & Insights

According to industry sources, commercial PNG in Madhya Pradesh increased by 5–7% in early March 2026, while delays in new connections have affected over 500 hotels and restaurants statewide.

NRAI representative Abhishek Bahety highlighted the need for centralized monitoring and district-level coordination to avoid disruptions.

Quotes & Insights:

“Irregular gas supply is impacting operations and staff livelihoods,” said Sumit Suri, MP Hoteliers Association.

Rashmi Arun Shami stated: “Necessary instructions are being issued; gas supply should normalize from tomorrow.”

Statistics:

• Madhya Pradesh has over 3,000 commercial establishments dependent on LPG and PNG.
• Supply disruptions in March 2026 affected approximately 15% of hotels and restaurants in Bhopal and Indore.
• The hospitality sector contributes roughly 2% to MP’s GDP, with fuel cost fluctuations significantly impacting profitability.

The meeting underscores the importance of a stable energy supply in sustaining tourism and hospitality, and how timely government action can prevent cascading economic losses. It also signals active industry-government collaboration to maintain operational continuity amid rising fuel costs.