US-Israel-Iran War: LPG Shortage Threatens Restaurant Closures In Indian Cities

(MENAFN- Khaleej Times)

Hotel associations in Bengaluru, Mumbai and Chennai say many eateries may be forced to shut temporarily as LPG deliveries slowed or stopped in recent days

• PUBLISHED: Tue 10 Mar 2026, 9:38 AM

• By:
• Mazhar Farooqui

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[Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]

A shortage of liquefied petroleum gas (LPG) is disrupting restaurants and small businesses across several Indian cities, with commercial supplies curtailed as authorities prioritise household cooking gas.

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Hotel associations in Bengaluru, Mumbai and Chennai say many eateries may be forced to shut temporarily as deliveries of 19 kg commercial cylinders widely used by restaurants have slowed or stopped in recent days.

The disruption comes as tensions in the Middle East raise concerns about energy shipments moving through the Strait of Hormuz, a key corridor for LPG supplies to India.

In Mumbai, LPG dealers told local media that waiting times for domestic cylinder refills have stretched to about eight days, while supplies of commercial cylinders have been suspended in some areas. Industry representatives warn that restaurants may begin turning to the black market or domestic cylinders to keep kitchens running.

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In Bengaluru, the Bangalore Hotels Association said many establishments could shut from March 10 if supplies are not restored.

“Without gas, food and refreshments will not be available at hotels starting tomorrow,” the association said in an appeal to the government, adding that most establishments maintain only two to three days of LPG stock.

Similar concerns have emerged in Chennai, where the city's hotel association warned that restaurants could run out of LPG within days.

Reports of supply disruptions have also surfaced in parts of Punjab, where gas distributors told local media that deliveries of commercial cylinders had stopped for the past two days and agencies were advised not to place fresh orders.

Panic buying

Meanwhile, reports of panic buying have emerged from parts of Delhi-NCR and Uttar Pradesh, where local media said long queues formed outside gas agencies and cylinders were being sold on the black market at nearly double the official price.

India imports about two-thirds of its LPG, with a large share sourced from the Middle East, making domestic supply sensitive to disruptions in global shipping routes, according to industry estimates.

Prices have also moved higher. Earlier this month, domestic LPG cylinder prices were raised by Rs 60 (Dh2.40) to Rs 913 (Dh36.59) in Delhi, while commercial cylinders used by restaurants increased by about Rs 115 (Dh4.50) according to price notifications issued by state-run oil companies.

Officials maintain there is no nationwide shortage, saying stocks remain adequate and urging consumers to avoid hoarding.

The government has also tightened refill rules to curb panic booking. Consumers can now book a new LPG cylinder 25 days after delivery, compared with 21 days earlier, according to revised booking guidelines issued by oil marketing companies.

Keep kitchens running

For the hospitality sector, however, the immediate concern is keeping kitchens running.

Faisal Afreen, who runs the Dastarkhwan restaurant chain in the northern Indian city of Lucknow - part of UNESCO's Creative Cities Network as a City of Gastronomy - said the uncertainty around LPG supplies is worrying restaurant owners.

“The situation looks bleak, and we are managing somehow for now,” Afreen told Khaleej Times by phone.“We have called a meeting of LPG suppliers tomorrow (March 10) to see if we can work out some solution.”

Another Lucknow restaurateur, M Alam, said many eateries may have little choice but to shut if supplies are not restored soon.

“If the supply situation does not improve quickly, many restaurants will have no option but to close temporarily,” he said.

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