Indian Hotels, Eateries on Brink of Shutdowns as West Asia War Fuels LPG Crisis
Lucknow, March 11 (TNA) Indian hotels and restaurants across major cities are staring at potential shutdowns due to an acute shortage of commercial LPG cylinders, a crisis directly linked to the dragging West Asia conflict that has severely disrupted global energy supplies.
The escalating Iran-Israel-US war has choked critical shipping lanes like the Strait of Hormuz, delaying LPG imports from key suppliers such as Saudi Arabia and Qatar, which account for a significant chunk of India’s massive 31.3 million tonne annual consumption.
With 87 per cent of available LPG prioritised for domestic household use under government directives, commercial users like hotels are left high and dry, facing irregular or completely halted deliveries of essential 19-kg cylinders, compounded by recent price hikes of ₹115 per cylinder.
In Bengaluru, the situation is dire, with the Bangalore Hotels Association warning that nearly 70 per cent of establishments could halt operations from March 10 onward as gas stocks dwindle to zero; Mumbai has already seen 20 per cent of hotels shutter temporarily, while Chennai’s network of over 10,000 outlets reports supplies slashed in half, forcing rationing.
Industry leaders emphasise that prolonged disruptions from the Middle East turmoil could cascade into broader economic strain, underscoring the vulnerability of India’s hospitality sector to geopolitical shocks.
Kolkata and Pune eateries are similarly depleting their reserves, and Karnataka’s Deputy Chief Minister DK Shivakumar has acknowledged the statewide commercial sector meltdown, calling for immediate central intervention.
Hoteliers under bodies like the All India Hotel Association (AHAR) are pleading with the petroleum ministry for priority allocations, highlighting the ripple effects on students, working professionals, and even patients relying on these outlets for affordable meals, with fears of mass job losses and food security threats if the crisis persists another 1-2 days.
The government has responded swiftly by forming a high-level committee of executive directors from oil marketing giants IOCL, BPCL, and HPCL to assess stocks and streamline distribution, while instructing refineries to ramp up production and extending booking intervals to 25 days to prevent hoarding.
Domestic cylinders saw a ₹60 hike last weekend, but officials maintain India’s overall LPG reserves are adequate even as summer demand looms; hotels, meanwhile, are scouting costly alternatives like electric induction but warn of inefficiencies and higher operational burdens.