Commercial LPG Shortage Threatens Operations of Small and Mid-Sized Hotels in Mumbai

A severe shortage of commercial LPG cylinders in major cities has put small and mid-sized hotels and restaurants under pressure, with industry leaders warning that nearly half of Mumbai’s eateries may face temporary closure if supply is not restored soon.

Mumbai | March 11, 2026: The hospitality industry in Mumbai is facing growing uncertainty as a severe shortage of commercial LPG cylinders threatens the operations of small and medium-sized hotels and restaurants. Industry representatives have warned that if the supply is not restored within the next two days, nearly 50 percent of eateries in the city may be forced to temporarily shut down due to lack of fuel for cooking. According to Pradeep Shetty, Vice President of the Federation of Hotel and Restaurant Associations of India (FHRAI) and spokesperson for the Hotel and Restaurant Association of Western India, establishments with limited gas reserves are likely to suffer the most from the ongoing shortage. Many small and mid-sized hotels typically maintain only limited LPG stock, making them highly vulnerable when supply disruptions occur.

Reports of commercial LPG scarcity have also emerged from other major cities including Pune, Aurangabad and Nagpur, indicating that the issue is affecting hospitality businesses across several urban centres. Currently, suppliers are primarily distributing domestic LPG cylinders, leaving commercial establishments struggling to maintain their regular operations. The hospitality sector plays a critical role in serving millions of people daily and remains an essential component of urban food supply systems. Industry leaders recalled that even during the COVID-19 pandemic, the sector was classified as an essential service because of its role in ensuring food availability.

Shetty noted that while electric or induction-based cooking systems are technically available, they are not practical alternatives for many restaurants that rely on high flame cooking methods common in Indian cuisine. Transitioning to such systems would also require substantial infrastructure upgrades and financial investment. The shortage reportedly intensified following a government notification issued on March 5, which has created confusion among suppliers and distributors. As a result, the supply of commercial LPG cylinders to several hotels, restaurants and food service outlets has been disrupted, leaving the sector urging authorities to intervene and restore supply immediately

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