Chennai restaurants face possible shutdown as LPG shortage hits supplies

Restaurants say stocks may last only 1–2 days as supply disruption linked to West Asia conflict.
Representative image of a restaurants
Representative image of a restaurants
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CHENNAI: Restaurants across Tamil Nadu face a possible shutdown as commercial LPG supplies have been disrupted due to the ongoing West Asia war, leaving many eateries with stocks that may last only one or two days. Hoteliers say the shortage is already affecting operations, forcing several establishments to cut down menu items and delay service hours.

At the popular restaurant chain Adyar Ananda Bhavan, MD Srinivasan Raja told India Today that 80-90 of the chain’s 100+ outlets in Tamil Nadu are facing a cylinder shortage and risk shutdown within 1-2 days, with management planning to operate mainly during peak hours. Outlets at airports and railway stations using induction stoves may continue, while highway branches are the worst affected, he added.

Meanwhile, popular vegetarian restaurant chain Sangeetha Veg announced there would be temporary changes to its services. From March 10, the chain will operate with a limited menu focused on essential items, and certain special dishes will not be available while regular items will be served only during limited hours. The restaurant said the changes will remain until LPG supply stabilises.

Sri Ananda's, another popular hotel in Chennai, also announced changes to its menu. "We have stopped preparing fried rice, side dishes, and appam as these items require more LPG. We do not know how long this (supply crisis) will continue," an official told news agency PTI.

Why are restaurants facing an LPG shortage?

Hotel industry representatives say the shortage of commercial LPG cylinders is linked to disruptions in the supply chain caused by the ongoing Iran–Israel conflict. The conflict has raised concerns about fuel availability, affecting the distribution of commercial cylinders used by hotels and restaurants.

What are hotel owners demanding?

The Tamil Nadu Hotels Association has appealed to the central government to withdraw an order instructing oil marketing companies to suspend commercial LPG cylinder supplies. The association warned that many restaurants may be forced to shut down if the supply situation does not improve soon.

What steps has the government taken?

On March 6, the government invoked emergency powers to direct oil refineries to increase LPG production in order to boost the availability of domestic cooking gas and prevent potential disruptions arising from the escalating West Asia conflict.

A day later, on March 7, the prices of domestic LPG and commercial cylinders were increased by Rs 60 and Rs 114.5, respectively, further adding to concerns among businesses dependent on commercial LPG supply.

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