The Centre has invoked the Essential Commodities Act to ensure regular supply of cooking gas after a commercial LPG shortage linked to global energy disruptions amid the Iran–Israel conflict has left hotels and restaurants across cities like Bengaluru, Chennai and Mumbai staring at a shutdown. The order is to make sure that natural gas supply is regulated in such a way that the highest priority is given to piped natural gas for homes and CNG for vehicles.
In a major ripple effect due to the Iran-Israel-US war and the disruption it caused in key energy shipping routes in the Middle East, the hospitality sector in major cities like Bengaluru, Mumbai and Chennai is now facing a sudden shortage of commercial LPG cylinders, with restaurant associations warning that eateries could shut down within days if supplies are not restored.
The widening conflict in the Middle East disrupted fuel lifelines, including India's LPG supplies, the government has prioritised domestic cooking gas supplies to households. This has led to a supply crunch for hotels and restaurants which use market priced commercial LPG.
This comes after last week, the government increased the price of LPG cylinders, raising household cooking gas rates by Rs 60 and commercial LPG cylinder prices by Rs 115, citing supply pressures.
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"The supply of gas cylinders for commercial use has been stopped from today. Since the hotel industry is classified as an Essential Service, the common people, senior citizens, students, medical, and other people who depend on it will face difficulties in their daily meals," the notice read, according to ANI news agency.
Association president PC Rao later said hotels would continue operating “till the last drop” of available gas stocks while urging the government to restore supply immediately.
Hospitality industry leaders in Chennai have also raised concerns over the LPG shortage. The hotels’ association wrote to Prime Minister Narendra Modi requesting urgent intervention to ensure uninterrupted supply of commercial cooking gas. Association president M Ravi said the food industry operates around the clock and supplies meals to hospitals, IT parks, college hostels, train passengers and business travellers. Any prolonged disruption could affect a large number of people who rely on restaurant food daily.
He also noted that banquet bookings and events at hotels could be impacted if gas supplies remain uncertain.
The hospitality industry inMumbai is also facing a growing crisisdue to the shortage of commercial LPG cylinders. Industry estimates suggest that nearly 20% of hotels and restaurants have already suspended operations. Vijay Shetty, president of the India Hotels and Restaurant Association told India Today the crisis could soon paralyse the restaurant industry in Mumbai.
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