Chennai/Bengaluru (Economy India): Restaurants and hotels across southern India are facing mounting pressure due to a severe shortage of commercial LPG cylinders triggered by the ongoing West Asia crisis. Industry representatives say the shortage, combined with rising energy prices, is threatening the operations of eateries in Tamil Nadu and Karnataka.
Hotel and restaurant owners in major cities such as Chennai and Bengaluru warned that if the supply of LPG cylinders is not restored soon, many establishments could be forced to temporarily shut down their businesses.
Restaurants Running Out of Gas Supplies
According to industry sources, several restaurants in Tamil Nadu have only enough LPG stock to last one or two days. As a result, many establishments have already begun reducing their menu offerings in an effort to conserve gas consumption.
Restaurant operators say dishes that require continuous flame—such as dosa, tea, and coffee—are becoming increasingly difficult to serve as LPG supplies dwindle.
A senior executive from a leading restaurant chain in Chennai, speaking on condition of anonymity, described the situation as similar to the COVID-19 lockdown disruptions, when businesses struggled to operate amid supply chain interruptions.
“We are cutting down our menu to reduce LPG consumption. Certain items require continuous gas supply, so we are limiting the number of dishes available,” the restaurant executive said.
Bengaluru Hospitality Sector Also Under Pressure
The situation is equally concerning in Bengaluru. In a statement, the Bengaluru Hotels Association warned that hotels could be forced to shut operations starting March 10 if the gas supply runs out.
Honorary President P. C. Rao said hotels will continue operating only as long as their LPG stocks last.
Hotel industry representative Chandrashekhar Hebbar described the shortage as a serious crisis and urged authorities to intervene immediately.
“The government must act quickly to resolve the situation,” Hebbar said.
Industry Calls It a ‘Major Shock’
Industry bodies claim that oil companies had earlier assured uninterrupted LPG supply for up to 70 days, making the sudden disruption particularly alarming for the hospitality sector.
The association said the unexpected halt in supply has dealt a major blow to restaurants already coping with rising operational costs.
Government Steps to Boost LPG Production
Amid the escalating West Asia conflict and fears of supply disruptions, the Government of India had earlier directed oil refineries on March 6 to increase LPG production in order to ensure adequate availability for households.
However, rising energy prices have already begun affecting consumers and businesses. On March 7, the price of domestic LPG cylinders was increased by ₹60, while commercial LPG cylinders were raised by ₹114.5.
Wider Economic Impact
Experts warn that prolonged energy supply disruptions could affect several sectors, including hospitality, retail food services, and small businesses that rely heavily on LPG for daily operations.
If the crisis continues, restaurants may face higher costs, reduced menu options, and possible temporary closures—adding further pressure on India’s food service industry.
(Economy India)
