Restaurants across several Indian cities are grappling with a shortage of commercial LPG cylinders, just days after the government announced an increase in the prices of both domestic and commercial cooking gas.

Industry bodies have warned that if the supply situation does not improve quickly, many restaurants could be forced to suspend operations.

Hotel and restaurant associations in Bengaluru and Chennai have raised the alarm, saying that disruptions in LPG supply have already begun affecting kitchen operations.

In Bengaluru, industry representatives warned that restaurants may be compelled to shut their kitchens if commercial gas deliveries are not restored soon.

A similar concern has been expressed by the hotel association in Chennai, which has appealed to Prime Minister Narendra Modi to intervene and resolve the crisis.

The association stated that commercial LPG distributors have halted supplies, citing a lack of stock, leaving many eateries struggling to continue operations.

In a statement shared online, the Chennai body said that restaurants are already facing severe operational challenges due to the shortage. It warned that if the supply disruption continues, several establishments may have no choice but to temporarily close their kitchens.

The association also pointed out that the shortage could disrupt previously scheduled banquet events at hotels and impact large-scale food supply services provided to IT parks, corporate offices and college hostels.

The National Restaurant Association of India (NRAI) has also stepped in, urging the government to address the issue urgently. The industry body cautioned that restaurants rely heavily on commercial LPG for daily operations and any prolonged disruption could severely damage the sector.

According to the NRAI, the restaurant industry operates almost entirely on commercial LPG cylinders, and interruptions in supply could lead to widespread shutdowns. The body warned that if the situation is not resolved soon, the sector could face a “catastrophic closure” of many establishments.

The problem is not limited to southern cities. Restaurant owners in Gurugram and Mumbai have also reported shortages of commercial LPG, raising concerns across the hospitality industry.

Some restaurant managers say they are trying to manage operations using backup cylinders while exploring alternative arrangements. Rohit Arora, who manages a restaurant in Gurugram, said their LPG vendor had informed them that commercial gas deliveries had been temporarily paused.

He added that the restaurant currently has backup cylinders that may last only a few days. If the disruption continues beyond that, they may have to switch to residential cylinders or scale down their menus to reduce gas consumption.

Reports from Mumbai suggest that several eateries in neighbourhoods such as Dadar, Andheri and Matunga have already begun modifying their operations to conserve LPG. Some restaurants have removed slow-cooking dishes from their menus while others have shortened their working hours to save fuel.

The LPG shortage has also affected municipal services in some areas. In Pune, the municipal corporation has temporarily shut down the city’s gas crematoriums.

Authorities said the available propane and butane are being diverted to ensure adequate domestic LPG supply for households across the country.

The supply disruption comes at a time when global oil prices have been under pressure due to rising geopolitical tensions. The ongoing conflict involving Iran and the United States has triggered instability in the Middle East, raising concerns about the global energy supply chain.

Particular attention has been focused on the Strait of Hormuz, a crucial shipping route through which nearly one-fifth of the world’s oil supply passes. Iran’s targeting of the region has heightened fears of potential disruptions to energy transport, which could further drive up oil prices.

Amid growing concerns over LPG availability, the Indian government has said it is taking steps to address the issue. The Ministry of Petroleum and Natural Gas announced that oil refineries have been instructed to increase LPG production.

The ministry said the additional production would be directed primarily towards domestic consumption in order to ensure adequate supply to households. Authorities have also introduced a 25-day gap between LPG cylinder bookings in an effort to curb hoarding and prevent black-marketing.

At the same time, the government has formed a committee to examine the concerns raised by restaurant bodies and other commercial users regarding LPG supply. The panel will review industry representations and explore possible measures to address the shortage affecting the hospitality sector.