The ongoing conflict in West Asia has triggered a crisis in India's hospitality sector, with hotels and restaurants grappling with a severe shortage of cooking gas. This crisis has led to widespread disruption, affecting businesses and households across the country. The National Restaurant Association of India (NRAI), Indian Hotel and Restaurant Association (AHAR), and several other associations have raised concerns, warning that the non-availability of cooking gas will force many establishments to shut down. The situation is particularly dire in Bengaluru, where disruptions in commercial LPG cylinder supply have triggered concerns among businesses and households. The Bengaluru Hotels Association has warned that if the supply is not restored soon, establishments may be forced to halt food services, as most small eateries rely heavily on LPG for cooking and use multiple cylinders each day.
The crisis has also impacted Mumbai, where around 20% of hotels and restaurants have shut down, with associations projecting that nearly 50% of hotels and restaurants will shut down in two days if the situation does not improve. In Delhi-NCR, while some large restaurants have managed to continue operations by having a bank of extra cylinders, smaller outlet owners are struggling with longer waiting periods and are forced to buy in the black market. The situation is equally dire in Hyderabad, where paying guest accommodations and hostels are affected by the cooking fuel shortage.
The crisis has also impacted Tamil Nadu, where the Chief Minister has written to the Prime Minister seeking necessary alternative arrangements to address the shortage. In Kerala, the crisis has forced many establishments, including catering units and hotels, to shut down within days, with the situation likely to disrupt public transport as a significant number of vehicles rely on CNG. The Gujarat government has curtailed gas supply to industries by up to 50% to safeguard domestic LPG availability, while the Ministry of Petroleum and Natural Gas has set up a committee to review supply shortages of commercial LPG.
The crisis has also affected the hospitality sector in Punjab, where limited supply of commercial gas has started creating anxiety over impending losses. In Rajasthan, hotels, restaurants, and roadside food vendors are facing a sudden shortage of LPG cylinders, with the wedding season and tourist arrivals adding to the worries. The Congress MLAs have demanded that the BJP-led State government give a subsidy on the increased prices for both domestic and commercial LPG cylinders.
The situation is equally dire in West Bengal, where restaurants in Kolkata have reported a shortage of commercial gas supply, with autorickshaw drivers forming serpentine lines outside CNG stations. In Cooch Behar, locals have complained that domestic cooking gas was not supplied to their homes even after 10 days of booking cylinders. The Andhra Pradesh Civil Supplies Minister has clarified that there is no shortage of LPG gas in the State and people should not panic, while the Ministry of Petroleum and Natural Gas has directed refineries to maximise LPG output and asked the OMCs to focus on domestic gas supply.
The crisis has also impacted the textile industry, with all textile processing factories using LPG commercial cylinders for the singeing process, and there is no alternative for it. The Madhya Pradesh government is going to form a three-member committee to monitor the arrangements of supply of essential items like cooking gas, oil, and food items. The Hotel and Restaurant Association of Odisha has urged the Union Minister for Petroleum and Natural Gas to take immediate steps to restore and ensure uninterrupted supply of commercial LPG cylinders to hotels and restaurants.
The crisis has also affected the state of Chhattisgarh, where remote areas have a low number of gas agencies, and consumers fear that the waiting time will go up due to supply side pressure. In the Bastar region, the impact is expected to be less visible because the refilling rate of Ujjwala scheme cylinders is already slow due to affordability issues and people have access to traditional energy sources such as wood.
The crisis has also impacted the state of Jharkhand, where consumers in Ranchi have reported issues with booking gas cylinders, while in Bihar, long queues have formed outside gas agencies for the refill of domestic LPG cylinders. The situation is equally dire in Uttar Pradesh, where hundreds of hotel and restaurant owners are in panic as some cities witnessed long queues outside LPG distribution centres in a hurry to refill their gas cylinders.
The crisis has also impacted the state of Kerala, where the All Kerala Caterers’ Association has warned that a good number of caterers will soon have to shut down due to the severe shortage of commercial cooking gas. The situation is equally dire in West Bengal, where restaurants in Kolkata have reported a shortage of commercial gas supply, with autorickshaw drivers forming serpentine lines outside CNG stations. The Hotel and Restaurant Association of Eastern India president has warned that the hospitality industry in West Bengal is facing a major crisis, with some restaurants having stock anywhere between two to seven days, but most do not have a backup to keep their kitchens running for longer periods.
