Commercial LPG shortage hits restaurants across India; menus cut, shutdown fears rise

In a development that is quietly but severely disrupting daily life across several states, an acute shortage of 19-kg commercial LPG cylinders has forced hotels and restaurants in cities such as Chennai, Mumbai, Kolkata and Bengaluru to trim menus, delay opening hours and, in some cases, face the prospect of temporary closures.

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What was once a routine morning rush of idlis, dosas, variety rice and multiple side dishes is now a pared-down affair in many Tamil Nadu eateries, and the ripple effects are being felt by office-goers, students and families who depend on them.

LPG shortage hits eateries

A field survey by The Federal, corroborated by on-ground reports, reveals the extent of the crisis. Leading hotels in Chennai have already reworked their lunch menus. Boards outside eateries bluntly declare, “No variety rice,” because there isn’t enough gas to cook multiple dishes.

Establishments that traditionally threw open their doors at 6 am are now opening only at 7 am. Where kitchens once offered three different kurmas and two varieties of sambar, only a single item is being prepared today. The message from hoteliers is clear, they are rationing fuel to stay afloat.

The iconic Annapoorna Hotel chain in Coimbatore, a 50-year-old institution that never shuts down even during festivals, issued a public statement on Monday, announcing menu reductions effective Tuesday (March 10). “Due to the geopolitical crisis in the Middle East, severe restrictions have been imposed on LPG distribution. We face daily shortages… We are implementing temporary measures, focusing only on essential items,” the management said, apologising to customers for the inconvenience. They said they are coordinating with the Centre, state government and distributors for a quick fix.

Bengaluru hotels face shutdown

The crisis is not confined to Tamil Nadu. In neighbouring Karnataka, scores of hotels and restaurants across Bengaluru are on the brink of shutting down from Tuesday (March 10) after the supply of commercial LPG cylinders was abruptly halted, the Bengaluru Hotels Association warned on Monday.

“The supply of gas cylinders for commercial use has been stopped from today,” the association said in a notice. “Since the hotel industry is classified as an essential service, common people, senior citizens, students, and others who depend on it will face difficulties in their daily meals.”

The disruption has come as a shock to the industry, particularly because oil companies had earlier assured stakeholders there would be no supply disruption for at least 70 days. “The sudden stoppage of supply is a big blow to the hotel industry,” the association said in a statement.

The association has appealed to the Union government to intervene urgently and restore commercial gas supply before the situation worsens. If supplies are not restored, the association warned, hotels across the city will suspend operations from Tuesday.

Hoteliers warn of closures

Chennai Hotel and Restaurant Owners Association president M Ravi did not wait for the situation to worsen. On March 9, the association shot off an urgent letter to Prime Minister Narendra Modi, urging that commercial LPG supply to hotels be treated as an essential service at par with hospitals, IT parks, college hostels and railway catering. “Many starred hotels have confirmed bookings for auspicious events. A prolonged shortage will snap the entire food supply chain and cause immense hardship to the public,” the letter warned. Association sources told reporters that without immediate priority allocation, several restaurants may have no option but to shut down temporarily or permanently.

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The crisis is now spreading. Tamil Nadu Merchants Association president Vikramaraja, after meeting Chief Minister MK Stalin at the secretariat, warned that if the situation is not set right immediately, hotels and restaurants in Madurai city will be forced to close down for the next three days. “The shortage continues. It is taking three days even to book a cylinder. In the coming days the shortage may worsen. If the Central government does not intervene at once, bigger problems will arise,” he told reporters.

Commercial LPG shortage widens

Pradeep Shetty, vice president of the Federation of Hotel & Restaurant Associations of India (FHRAI) and spokesperson for the Hotel & Restaurant Association–Western India (HRAWI), said reports of acute shortages have already emerged from cities such as Mumbai, Pune, Aurangabad and Nagpur, with similar disruptions being reported from states including Delhi, Karnataka, Telangana and Andhra Pradesh. If the situation persists for another two days, he said, nearly half the hotels and restaurants in Mumbai may be forced to suspend operations temporarily.

Kolkata too feels the heat

Kolkata's restaurants are also feeling the heat. A quick survey by the National Restaurants Association of India (NRAI) found that 40 per cent of the city's roughly 5,000 eateries are already facing operational disruptions, while another 30-40 per cent have only a few days of LPG stock left.

"If supply isn't normalised soon, widespread closures are inevitable," said Piyush Kankaria, head of NRAI's Kolkata chapter.

The Hotel & Restaurant Association of Odisha (HRAO) has sought Petroleum Minister Hardeep Singh Puri’s intervention to ensure uninterrupted supply of commercial LPG cylinders, warning that disruptions are severely affecting kitchen operations in hotels and restaurants. In a memorandum, the association said establishments rely heavily on a steady LPG supply and that the current shortage could force closures, cancellations of bookings and inconvenience to tourists.

Hotels in Puducherry have begun scaling back services and introducing low-fuel menus as a shortage of commercial LPG cylinders disrupts operations. Hoteliers say they are rationing gas by limiting certain food items and adjusting service hours, while LPG dealers report that supplies have been prioritised for domestic consumers, leaving the commercial sector without refills.

Meanwhile, LPG supply for both domestic and commercial consumers in Telangana remains normal, with oil companies supplying about 2.3 lakh cylinders daily, Civil Supplies Commissioner M Stephen Raveendra said, urging the public not to panic and warning against hoarding or black marketing.

Stalin holds emergency meeting

Tamil Nadu Chief Minister MK Stalin convened an emergency high-level meeting at the secretariat with senior officials, including the chief secretary and the secretary for food and cooperation. The discussions, held immediately after the chief minister met the merchants’ delegation, focused on how to prevent the cylinder shortage from crippling Tamil Nadu. The state government has formally urged the Centre to give top priority to domestic cylinders so that household supply remains uninterrupted. In a significant development, the Tamil Nadu government has stepped in with assurances aimed at calming public anxiety.

Following the meeting, Stalin said, “I held a review meeting today to assess the possible impact of the ongoing US-Iran conflict on Tamil Nadu and to chart the necessary response measures. I have written to the prime minister, urging the Union government to ensure the safety of Tamils living across the affected Gulf countries and to safeguard the welfare of Tamil Nadu fishermen who are currently stranded in the region. I have also emphasised that the Union government must ensure that the LPG cylinder shortage arising from this conflict does not affect the public, commercial establishments, or MSME industries in Tamil Nadu. I have further urged that all necessary alternative arrangements be made for restaurants affected by the commercial gas cylinder shortage and that the additional power required be secured and supplied.”

TN assures adequate supply

Senior Tamil Nadu officials told The Federal that the state has sufficient stock of domestic 14.2-kg LPG cylinders to meet household demand for the next 20 days without any disruption. The state has written to the Centre, requesting uninterrupted supply and issued formal orders to all oil companies to furnish complete details of cylinder demand and current stock levels.

Tamil Nadu School Education Minister Anbil Mahesh Poyyamozhi gave a firm assurance in the Assembly that no student staying in government or aided school hostels will face any disruption in meals while writing examinations. “The government will personally ensure that hostel kitchens continue to function smoothly despite the commercial cylinder shortage,” he said.

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Officials added that as commercial cylinder demand rises sharply in the state, the government is actively monitoring the situation and will take necessary steps to address the gap.

The human cost is already visible. Small eateries that feed daily-wage workers and students are the worst hit. Larger establishments are surviving by trimming menus, but the joy of choice that defines Tamil Nadu’s vibrant culinary culture is fading fast.

(With Agency inputs)