LPG shortage shuts 20% of Mumbai eateries, industry warns of wider closures

The ongoing conflict involving Israel, United States and Iran has begun affecting domestic supply chains, with disruptions in commercial LPG supply hitting the hotel and restaurant sector in Maharashtra. Hoteliers have begun adopting menu rationing, slow cooking, and purchasing gas cylinders from the black market.

In Maharashtra, around 20% of hotels and restaurants in Mumbai have shut down, with associations projecting that nearly 50% of outlets in the city could close within two days if the situation does not improve. “One more day, the percentage will increase. We understand the reason but instead of blanket stoppage, the supply should continue for at least 25%, so the hotels can survive somehow,” said a representative of the Indian Hotel and Restaurant Association, the apex body for the hospitality trade in the State.

“I spoke to the Chief Minister, but continuing the supply for commercial use at 25% looks difficult as the domestic supply cannot be jeopardised,” Chhagan Bhujbal, Minister for Food, Civil Supplies and Consumer Protection of Maharashtra, said suggesting using kerosene. However, he added that after discussions with the hotel association he understood that there are infrastructural challenges and risks involved.

The AHAR claimed that 20% of hotels have already shut down in Mumbai and appealed to Union Minister for Petroleum and Natural Gas Hardeep Singh Puri to reconsider the directive to prevent a widespread crisis.

Mumbai-based fine-dining restaurant East Asia has been affected by the LPG shortage and is paying higher prices to continue operations. “To keep running our restaurant, we are paying at least 30% more than what you used to pay for the LPG. We are somehow running our boat,” operations head Amar Jinwal said. The restaurant has faced an LPG crunch for the past four days and is exploring the option of using induction cooking, though it does not appear feasible.

Another restaurant chain owner, who did not wish to be named, said, “I have to run more than seven outlets, procuring LPG has become difficult even in the black market. The prices has sky-rocketed.”

Another association, the Hotel and Restaurant Association of Western India, also raised concerns, saying it has received reports of severe shortages from cities including Mumbai, Pune, Aurangabad and Nagpur. Similar disruptions have also been reported in States such as Delhi, Karnataka, Telangana, and Andhra Pradesh.

“If the situation does not improve, we will see a temporary shutdown of 50% of hotels and restaurants in Mumbai, depending on the stock of cylinders they currently have,” Pradeep Shetty, Vice-President of the Federation of Hotel and Restaurant Associations of India and spokesperson for HRAWI, said.

The AHAR has also written to Mr. Puri, raising concerns regarding “Clause No.3 of your direction which states all public sector OMCs shall ensure that LPG so procured is supplied/marketed solely to consumers of domestic LPG only.” The association said any stoppage of PNG supply to the commercial sector would seriously affect about 40 lakh direct jobs, 60 lakh indirect or self-employed individuals, and a total of about 200 lakh people whose livelihoods depend on the sector. The shortage has been attributed to supply chain disruptions arising from the ongoing West Asia conflict

Shift to electric energy is challenging

According to Mr. Jinwal, productivity on induction cooking is reduced significantly and there are infrastructural constraints in installing such systems. “However, if this continues, induction is our last resort,” he added.

The FHRAI said alternatives such as electric or induction-based cooking are emerging but are not “yet viable” for most commercial kitchens that rely on high-intensity, fast-paced cooking methods typical of Indian cuisine.

Transitioning to such systems also involves high costs and infrastructural changes. “At present, the industry has no practical alternative and urgently requires restoration of uninterrupted commercial LPG supply to ensure that hotels, restaurants and food service establishments can continue operating without disruption,” Mr. Shetty said.

“I spoke to the Chief Minister, but continuing the supply for commercial use at 25% looks difficult as the domestic supply cannot be jeopardised,” Mr. Bhujbal said, reiterating that kerosene had been suggested as an alternative, though discussions with hotel associations highlighted infrastructural challenges and safety risks.

Published – March 10, 2026 04:31 pm IST