BENGALURU — Major cities across South India are facing a severe shortage of commercial liquefied petroleum gas (LPG) cylinders, forcing hotels and restaurants to shut down. The crisis, which intensified on March 10, 2026, has particularly affected the cities of Bengaluru and Chennai, where hospitality businesses rely heavily on LPG for daily kitchen operations.
Industry associations warn that unless supply improves quickly, the food and beverage sector in several cities could grind to a halt.
Restaurants Shut as LPG Supply Drops
Hotels and restaurants in Bengaluru began shutting their kitchens on March 10 after commercial LPG supply reportedly fell by nearly 50 percent. The disruption has made it difficult for establishments to maintain regular cooking operations.
The Bruhat Bangalore Hotels Association said the supply cut has pushed many businesses to the brink. According to the association, restaurants cannot continue operating when fuel deliveries are reduced so drastically.
Industry representatives warned that if the situation continues, the hospitality sector may face long-term financial losses and layoffs.
PG Residents May Face Food Crisis
The shortage is already impacting the daily lives of a large number of residents who depend on shared kitchen facilities. In Bengaluru alone, around 10 lakh people live in Paying Guest (PG) accommodations where meals are prepared collectively.
With LPG cylinders becoming difficult to obtain, many PG operators are struggling to prepare regular meals for residents. If the shortage continues, students and working professionals who rely on these kitchens could face significant disruptions in their daily food supply.
Booking Interval Increased to Prevent Hoarding
To manage limited supplies, the Ministry of Petroleum and Natural Gas has increased the mandatory interval for commercial LPG cylinder refills from 21 days to 25 days.
Officials say the measure is intended to prevent hoarding and ensure a more balanced distribution of available cylinders across businesses.
However, restaurant owners argue that the longer refill gap makes it even harder for them to maintain normal operations, especially when supply has already been cut.
Government Cites Middle East Tensions
The central government has attributed the shortage to disruptions in global fuel supply caused by geopolitical tensions in the Middle East.
In a statement issued on March 9, the Ministry of Petroleum and Natural Gas said it had instructed oil refineries across the country to maximize LPG production to ease the crisis.
According to the ministry, refineries have been directed to increase LPG output and prioritize domestic supply to stabilize the market.
Emergency Measures Introduced
To tackle the situation, the Indian government has invoked emergency measures aimed at boosting production and ensuring faster distribution of LPG cylinders.
Authorities hope that increased refinery output will gradually restore supply levels in affected cities and allow restaurants and hotels to resume normal operations.
However, industry bodies remain cautious, warning that unless supplies are restored quickly, closures could spread beyond South India to other major cities.
When Will LPG Supply Return to Normal for Restaurants and Hotels?
The timeline for restoring normal LPG supply to restaurants and hotels remains uncertain, but authorities say several steps are underway to stabilize the situation.
The Ministry of Petroleum and Natural Gas has instructed oil refineries across the country to maximize LPG production and prioritize domestic distribution. This emergency directive aims to increase the number of commercial cylinders available to businesses in major cities such as Bengaluru and Chennai.
To address the mounting crisis, the government has constituted a high-level committee of three Executive Directors from state-run Oil Marketing Companies (OMCs) to specifically review the representations from hotels and restaurants. Officials suggest that supply could gradually improve once refineries ramp up output and distribution networks adjust to the increased production. However, industry groups warn that restaurants and hotels may continue facing shortages for several days or even weeks if global fuel supply disruptions persist.
For now, restaurant and hotel owners are closely monitoring government actions and refinery output, hoping that increased production and improved logistics will restore regular LPG availability in the coming weeks.
