LPG Shortage: Bengaluru Hotels Approach High Court As Shutdown Fears Increase

Last Updated:March 18, 2026, 16:31 IST

Hotel industries rely heavily on the hotel ecosystem for steady demand. According to the petition, the effects of global geopolitical tensions are now felt in everyday operations.

A growing shortage of LPG cylinders has pushed Bengaluru’s hotel industry into a crisis, with thousands of eateries heading to possible shutdowns. The Bengaluru Hotels Association has approached the Karnataka High Court, seeking urgent intervention to restore supply. The issue has raised concerns not just for businesses, but also for workers and supply chains linked to the food sector.

The matter came up for a preliminary hearing before a single-judge bench of Justice Sachin Shankar Magadum. The court has issued notices to both the Union and State governments, along with oil refining companies, asking for their response. The case is scheduled to be heard again next Monday.

What Triggered the Crisis

As mentioned in a report by LiveLaw.in, at the centre of the dispute is the Natural Gas (Supply) Order, 2026, issued by the Karnataka government on March 09. The order restricts the daily supply of commercial LPG cylinders to 7,000 for the entire state. Out of this, only 1,000 cylinders are allocated to hotels, restaurants, and dhabas.

Industry representatives say this limit is far below actual demand. They argue that such restrictions have disrupted the regular supply chain, making it difficult for kitchens to operate smoothly. Many eateries are already reporting shortages, while others fear they may soon have to shut down temporarily.

Scale of Impact on Bengaluru

The association has pointed out that Bengaluru alone has more than 40,000 hotels. Around 6 lakh workers depend directly on this sector for their livelihood. Any disruption in LPG supply could therefore have a wide ripple effect.

Beyond restaurants, the impact may extend to sectors like dairy and vegetables. These industries rely heavily on the hotel ecosystem for steady demand. According to the petition, the effects of global geopolitical tensions are now being felt in everyday operations of Indian kitchens.

Legal Grounds and Industry Concerns

The petition argues that the sudden restriction on LPG supply violates the right to carry on a profession under Article 19(1)(g) of the Constitution. The association has described the move as an indirect but serious restriction that is crippling business activity.

Hotel owners say the abrupt nature of the order has left them with little time to adjust. Many kitchens depend entirely on commercial LPG, and alternative arrangements are not easy to implement at short notice.

Demand for Immediate Relief

The association has sought an uninterrupted supply of commercial LPG cylinders, especially for hotels and restaurants in Bengaluru. It has also requested interim relief to ensure smooth functioning while the case is under consideration.

The petition has been filed by advocate Satish K on behalf of the association. The industry is hoping for quick intervention, as the situation remains uncertain and pressure continues to build.

Wider Context of LPG Concerns

The issue comes at a time when LPG supply concerns are being raised in other parts of the country as well. In a separate development, the Bombay High Court recently closed a petition filed by LPG distributors after the Central government assured that steps are being taken to prevent shortages.

For Bengaluru’s hotel sector, however, the immediate concern remains survival. With limited supply and rising demand, the coming days will be crucial for thousands of small and large food businesses across the city.

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