LPG shortage forces 20% of Mumbai restaurants to shut, more to follow

Reports suggest that shortage of commercial LPG cylinders has forced nearly 20% of hotels and restaurants in Mumbai to shut down, with industry associations warning that up to 50% of eateries could close within the next two days if the situation does not improve.

The supply disruption has been linked to the ongoing geopolitical tensions involving Israel, Iran and the United States, which have begun affecting domestic fuel supply chains across India. Restaurants are struggling to secure commercial LPG cylinders and are resorting to measures such as menu rationing, slow cooking and even purchasing cylinders on the black market to continue operations.

According to reports, Indian Hotel and Restaurant Association, many establishments in Mumbai are already facing severe difficulties. They urged authorities to allow at least 25% of commercial LPG supply to continue so that restaurants can remain operational.

However, Chhagan Bhujbal, Maharashtra’s Minister for Food, Civil Supplies and Consumer Protection, said maintaining commercial supply could be difficult as domestic LPG supply must be prioritised. He suggested the temporary use of kerosene, though industry representatives noted that infrastructure limitations and safety concerns make this option challenging, as per reports.

The Association of Hotels and Restaurants (AHAR) said it has already witnessed around 20% closures in Mumbai and has written to Hardeep Singh Puri, Union Minister for Petroleum and Natural Gas, urging the government to reconsider restrictions on commercial LPG supply to prevent a larger crisis.

Restaurant owners reportedly say that the shortage has sharply increased operating costs. A representative from the Mumbai-based fine-dining restaurant East Asia said they are currently paying around 30% more than usual for LPG just to keep their kitchen running. The restaurant has been facing shortages for the past four days and is exploring induction cooking, though it may not be practical.

Other restaurant operators report that even black-market LPG cylinders have become scarce, with prices rising sharply. Some owners managing multiple outlets say sourcing enough fuel has become nearly impossible.

The Hotel and Restaurant Association of Western India (HRAWI) has also reported severe shortages across several cities including Mumbai, Pune, Aurangabad and Nagpur. Similar supply disruptions are emerging in states such as Delhi, Karnataka, Telangana and Andhra Pradesh.

Pradeep Shetty, Vice-President of the Federation of Hotel and Restaurant Associations of India, has reportedly warned that if supplies are not restored soon, nearly half of Mumbai’s restaurants may shut temporarily depending on their remaining LPG stock.

Industry bodies have also raised concerns about the government directive requiring public sector oil marketing companies to supply LPG exclusively to domestic consumers, arguing that this could severely impact the hospitality sector. They estimate that the industry supports around 40 lakh direct jobs and 60 lakh indirect jobs, affecting nearly 2 crore livelihoods overall.

While alternatives such as electric or induction cooking are being considered, industry leaders say they are not yet viable for most commercial kitchens, which rely on high-intensity cooking methods typical of Indian cuisine. Installing such systems would also require significant infrastructure changes and additional costs. Hospitality groups are therefore urging the government to restore uninterrupted commercial LPG supply to prevent further closures and economic disruption in the sector.