‘People Rely On Us For...’: Hoteliers Warn LPG Supply Issues Could Hit Daily Diners

Last Updated:March 10, 2026, 20:33 IST

AHAR president Vijay K. Shetty reported 20% of hotels shut due to LPG shortages, with 50-60 more closures expected. NRAI's Amit Bagga warned of potential restaurant closures.

Amid concerns over shortage of commercial LPG cylinders, some of the hotel associations on Tuesday warned that the crunch may soon affect the common man. One of the bodies said 20% of their hotels have shut due to the short supply and 50-60 more may be forced to pull down their shutters soon.

“You are absolutely right. Already, 20% of our hotels have closed due to the short supply of LPG cylinders, and this trend is likely to continue. It is expected that at least 50–60 more hotels may shut down in the next 2–3 days," Indian Hotel & Restaurant Association (AHAR) president Vijay K. Shetty told IANS.

Amit Bagga , co-chapter head of Delhi Chapter of National Restaurant Association of India (NRAI) and co-founder of Daryaganj Restaurants, warned that if the situation is not addressed it could lead to closure of restaurants.

Also Read: Govt Sets Up IOC-HPCL-BPCL Panel To Review Commercial LPG Supply Issues: Report

“Restaurants typically receive their cooking gas supply in two forms: PNG (piped natural gas) and commercial LPG cylinders. In Delhi some mall-based restaurants and a few high-street outlets already operate on PNG wherever the network is available. However, a large number of restaurants still rely primarily on LPG cylinders."

He further said that the current challenge is the availability of LPG cylinders, “which in many cases are either in short supply or being sold at a premium in the market". “Following recent national news coverage, there is also a sense of panic, which could potentially lead to hoarding of cylinders," he warned.

“Most restaurants do not maintain more than one to two days of LPG inventory. If the situation is not addressed promptly, it could lead to restaurant closures, which would have wider implications as the livelihoods of restaurant staff could be affected. Additionally, a large number of people rely on restaurants for their daily meals," Bagga said.

“There have also been some recent notifications suggesting lower priority for commercial establishments in cylinder supply. However, this may be difficult to effectively monitor at the ground level," he added.

Meanwhile, Hotel and Restaurant Association Chairman, Madhya Pradesh, Sumit Suri said that the restaurants in Indore are not facing any such difficulties at present but may face soon.

“Currently, we are not facing any such difficulties in Indore… Because this problem is going to become global, and India will also face it. Therefore, we have announced a state-level meeting for tomorrow… An online meeting will be held with our president to decide the future strategy… We will stand shoulder to shoulder with whatever decision the government takes. Even during Covid, we were treated like essential services. This time too, we hope that the hospitality industry receives similar treatment…," he told ANI

The central government has ruled out curbing exports of refined petroleum products and said it was not facing a fuel crisis, even as it moved to set up a dedicated committee to address a commercial LPG shortage hitting the hospitality sector.

“We have not taken any decision on refined oil export curb," government sources told ANI. On LPG, officials announced that a three-member committee comprising Executive Directors of IndianOil, HPCL and BPCL has been formed to hear grievances from commercial users- including restaurants and hotels- and reprioritise supply based on genuine need. The oil marketing companies will also hold direct talks with restaurant associations to better understand the ground situation.

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