CHENNAI: Hotels and restaurants across India are facing operational disruptions as commercial LPG cylinder supply has been halted amid a nationwide shortage, sources said. Several leading hotels have warned that, with only a day’s stock remaining, they may have to shut operations unless immediate supply is restored.
The Ministry of Petroleum and Natural Gas has instructed oil companies to prioritize domestic household cooking gas amid concerns of an LPG shortage due to the ongoing Iran-Israel conflict affecting imports. The government has also increased the booking gap for domestic cylinders from 21 to 25 days to prevent hoarding and artificial scarcity.
Officials said, “On average, a family in India uses 7–8 cylinders per year. This means there is no need to purchase the next cylinder within six weeks. Adequate household LPG stocks are available. The extended booking period is intended to prevent hoarding and artificial shortages, while production has been increased to meet domestic demand.”
While household supply has been prioritized, commercial users including hotels are experiencing significant disruption. Several dealers have reportedly stopped supplying restaurants from as early as yesterday, prompting the Chennai Hotels Association to appeal to Prime Minister Narendra Modi and Tamil Nadu Chief Minister M.K. Stalin for immediate intervention.
The government has clarified that imported gas will be allocated only for essential sectors such as healthcare and education. A committee has also been formed to examine procedures for supplying LPG cylinders for commercial use. In Karnataka, some hotels had already announced closures today due to the shortage.