LPG Shortage May Force Half Of Mumbai’s Hotels, Restaurants To Shut

HRWI officials said while alternatives such as electric or induction-based cooking are gradually emerging, they are not yet viable for most commercial kitchens that rely on high-intensity, fast-paced cooking methods typical of Indian cuisine.

Update: 2026-03-10 19:23 GMT
Transitioning to such systems also involves significant cost and infrastructure changes.— DC Image

Mumbai: The ongoing war in West Asia is expected to take a heavy toll on the hospitality sector in Mumbai as nearly 50 per cent of hotels and restaurants across the city may be forced to shut operations due to the shortage of commercial LPG.

According to the Federation of Hotel & Restaurant Associations of India – the apex body of India’s hotel and restaurant sector – the commercial LPG shortage has become extremely serious over the past week, with intermittent disruptions escalating into a near complete halt in supply in several regions.

“We are already receiving reports of severe shortages from cities including Mumbai, Pune, Aurangabad and Nagpur, while similar disruptions are being reported in States such as Delhi, Karnataka, Telangana and Andhra Pradesh. If the situation does not improve within the next two days, nearly 50 per cent of hotels and restaurants in Mumbai may be forced to temporarily shut operations depending on the stock of cylinders they currently have,” said Pradeep Shetty, Vice President, FHRAI and Spokesperson, Hotel and Restaurant Association (Western India) – HRAWI.

Following the notification dated 05 March by the Ministry of Petroleum and Natural Gas, there has been considerable confusion among suppliers and distributors, many of whom have stopped supplying commercial LPG cylinders to hotels, restaurants and food service establishments, he added.

According to HRAWI, the LPG shortage will especially affect international tourists. Also, smaller and medium-sized eateries will be the first to be impacted, as they typically operate with limited reserves.

The hospitality sector in India is an essential service that caters to millions of people every day including working professionals, students and travellers both, domestic and international and, supports a vast ecosystem of employment through cloud kitchens, industrial kitchens and catering establishments. During the COVID-19 pandemic, the sector was recognised as essential.

HRWI officials said while alternatives such as electric or induction-based cooking are gradually emerging, they 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 significant cost and infrastructure 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.

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