A severe shortage of commercial LPG cylinders is disrupting India’s restaurant industry as supply routes from the Middle East face major disruptions. The crisis, linked to escalating military tensions involving the US, Israel, and Iran, has restricted movement through the Strait of Hormuz, a key route for global energy shipments.
India imports about 62% of its LPG, with nearly 85–90% typically passing through the strait, making the country highly vulnerable to the current disruption. As of 10 March, 2026, around 20% of hotels and restaurants in Mumbai have already shut down, with industry leaders warning closures could rise to 50% within days if supply does not improve, multiple media reports said.
Oil marketing companies have been instructed by the Ministry of petroleum and natural gas to prioritize domestic household cylinders and critical sectors such as hospitals, leaving commercial users with sharply reduced supplies.
Distributors in states including Maharashtra, Punjab, and Karnataka have reportedly halted or restricted commercial cylinder sales. Restaurants in major cities such as Bengaluru, Kolkata, and Chennai are cutting slow-cooked dishes, redesigning menus, and shifting to electric or wood-fired cooking to conserve fuel. Food delivery platforms are also expecting a decline in order volumes as restaurants cut down on certain fuel-consuming items.
Meanwhile, the price of 19-kg commercial cylinders has surged, with reports of black-market sales reaching ₹2,100 to ₹2,300.
Industry bodies, including the National Restaurant Association of India (NRAI) and the Federation of Hotel & Restaurant Associations of India (FHRAI) have urged the government to classify food services as an essential sector to ensure a steady LPG supply.
The government has ordered refineries to increase LPG production, extended domestic refill lock-in periods to 25 days to prevent hoarding, and begun exploring alternative import sources from Algeria, Australia, Canada, and Norway in an effort to stabilize supply, news media reports suggested.
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Naresh Khanna – 10 February 2025
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