Commercial LPG shortages hit hotels as West Asia crisis disrupts supply chains

Hotels and restaurants across parts of India are facing a shortage of commercial cooking gas as supply disruptions linked to the escalating conflict in West Asia prompt authorities to prioritise domestic LPG distribution to households.

Several state hotel associations have appealed to their respective governments to ensure a steady supply of commercial cylinders, saying oil marketing companies have begun rationing deliveries amid ongoing disruptions in global fuel supply chains.

The shortages come as the expanding confrontation involving Iran and the United States–Israel alliance affects energy transport routes and LPG availability in international markets, with potential implications for India’s supply.

To address the situation, the Union government has formed a three-member committee to examine grievances and oversee the prioritisation of domestic LPG supply.

In an effort to cushion the impact, Reliance Industries said on Tuesday that its massive refining complex in Jamnagar refinery complex would maximise production of cooking gas LPG. The company also said natural gas from the KG-D6 gas field in the Bay of Bengal would be diverted to priority sectors to support the Indian economy amid disruptions caused by the conflict.

The tightening supply has already begun affecting the hospitality sector. In Chennai and several parts of Tamil Nadu, a number of hotels and restaurants declared a holiday on Wednesday due to the lack of commercial LPG cylinders.

Notices posted outside some establishments informed customers that operations had been suspended because of the shortage. Early morning visitors who arrived for tea and breakfast expressed disappointment over the closures while hoping the government would intervene to stabilise supplies.

Restaurant owners said the remaining stock of commercial LPG could last only a few days, forcing many establishments to reduce menu options or prepare items requiring less fuel. Some eateries have temporarily dropped dishes such as dosas and fried rice, opting instead for simpler items like idli, sambar and variety rice meals.

Representatives of the Tamil Nadu Hotels Association met M.K. Stalin earlier this week to raise concerns about the sustainability of their businesses if the supply situation persists. Stalin later said he had urged the Union government to ensure that shortages do not affect the public, commercial establishments or small businesses.

Meanwhile, reports of possible LPG disruption triggered panic among consumers in Lakhimpur Kheri, where residents rushed to distribution centres to collect cylinders.

District authorities, however, insisted there was no shortage of domestic LPG and that supplies remained adequate. Officials said approximately 16,000 domestic cylinders were dispatched daily through the district’s 83 distribution centres, exceeding the average demand of around 15,000 cylinders.

District supply officer Anjani Kumar Singh described the rush as “false panic”, urging consumers not to worry and assuring them that the administration was monitoring the situation closely.

Some residents reported delays in delivery compared with usual timelines, while staff at LPG agencies said they had seen a surge in enquiries and bookings.

A similar trend was observed in Bengaluru, where gas agencies reported increased calls and online bookings from households seeking confirmation about cylinder availability. Dealers said stocks for domestic users remained sufficient but acknowledged that deliveries could take slightly longer.

Authorities have warned that strict action will be taken against hoarding or black marketing to prevent an artificial shortage.

In Uttar Pradesh, Yogi Adityanath reviewed the situation during a meeting on Tuesday, where officials confirmed that supplies of petrol and diesel remained stable across the state.

The chief minister directed departments to ensure uninterrupted fuel distribution and cautioned against any attempts to create panic or manipulate supplies.

With PTI and IANS inputs