Updated 11 March 2026 at 14:41 IST

LPG Supply Disruptions Hit Hotels Across Cities; Bengaluru Protests, Mumbai Restaurants Cut Menus

Hotel owners in Bengaluru protested over LPG supply disruptions, placing empty cylinders outside their establishments to highlight the crisis. Restaurants in Hyderabad and Chennai also reported LPG shortages, while Indian Oil said there is no nationwide shortage, attributing the issue to panic booking.

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Representative Image | Image: Unsplash

A disruption in LPG supply triggered protests by hotel owners across cities on Wednesday, with several restaurateurs warning that the ongoing shortage could severely affect business operations.

Hotel owners and staff staged a protest in the Gandhi Bazaar area of Bengaluru, demanding that the gas supply be restored immediately. They placed empty gas cylinders outside their establishments and held placards highlighting the crisis being faced. Protesters carried posters with slogans such as “Stop LPG shortage” and “Save the hotel industry.”

Hotel owners said their businesses have been severely affected due to the gas shortage and warned that continued disruption could make it difficult to run their establishments, while urging authorities to resolve the LPG supply issue at the earliest and ensure an uninterrupted gas supply to the hospitality sector.

Mumbai Hotels Report Crunch, Shift to Electric Induction Cooking, Cuts Menu 

In Mumbai, the unavailability of commercial gas cylinders has forced hotels to shift to electric induction cooktops. However, this has created operational challenges. The use of induction stoves has reduced the variety of dishes available on menus, as many items cannot be prepared quickly enough using this method.

As a result, several establishments are informing customers in advance that certain dishes cannot be served. This has led to empty dining areas, with customers either choosing not to visit or leaving because food preparation is taking significantly longer.

Shortage of gas cylinders has also affected hotel businesses in Chhatrapati Sambhajinagar. Hotel operators have begun collecting wood and branches to light traditional stoves in order to continue operations. At the busy Baba Petrol Pump area, cooks at the well-known Shiv Ganesh Naastha Center were seen preparing food on a traditional stove using kerosene and wood after repeated attempts to procure LPG cylinders failed.

Due to the absence of LPG, smoke from traditional cooking methods has been visible in the high-traffic area as hotel owners struggle to keep their businesses running.

Hotel owners in Thane have warned that more than 1,200 hotels and bars could shut down from Monday if LPG supply is not restored. According to the Thane Hotel Association, the shortage has been linked to disruptions caused by the ongoing conflict in Gulf countries.

Hoteliers claim that while domestic LPG supply continues, the supply of cylinders for commercial establishments has been halted. Hotel representatives have said they will meet Eknath Shinde to raise the issue and demand government intervention.

The association has also called for action against black marketing of cylinders and urged authorities to address the supply crisis. 

Restaurants in Other Cities Also Report LPG Crunch

Meanwhile, restaurants in other cities have also reported difficulties in procuring commercial LPG cylinders.

In Hyderabad, several restaurants have complained of LPG shortage ahead of Ramzan. The well-known restaurant chain Shah Ghouse has switched to traditional cooking methods and is using a wood stove in its kitchen after facing difficulties in procuring commercial gas cylinders required for daily operations.

A section of small hotels and restaurants in Chennai and other parts of Tamil Nadu declared a holiday on March 11 due to a shortage of commercial LPG cylinders. Notices displayed at some establishments informed customers that operations were suspended due to lack of LPG supply. Early morning customers who arrived for tea and coffee expressed disappointment over the closure of the hotels. "Due to lack of LPG supply, March 11, 2026, has been declared a holiday," a notice displayed in a popular hotel in the city.

Premium Hotels Continue Normal Operations

However, large luxury properties such as Taj Hotels and Oberoi Hotels & Resorts in Mumbai have not imposed menu restrictions so far. These hotels receive gas supply through pipeline systems, ensuring an uninterrupted fuel supply for their kitchens.

The pipeline-based system was introduced after the 2008 Mumbai attacks, replacing the earlier practice of storing large numbers of LPG cylinders inside hotel premises. Industry sources note that since these hotels host large numbers of foreign nationals daily, uninterrupted operations are critical.

Railways Issue Advisory to Prevent Food Service Disruptions

Amid reports of LPG shortages, the Indian Railway Catering and Tourism Corporation (IRCTC) has issued instructions to its catering units to ensure that passenger services remain unaffected. According to the advisory, IRCTC has instructed catering units at railway station food plazas, refreshment rooms, and public accommodation facilities to ensure no disruption in food and drinking water services.

Oil Company Says No Nationwide LPG Shortage

Speaking to Republic Media Network, the Chief General Manager (LPG – Delhi and Haryana) at Indian Oil Corporation said there is no shortage of LPG across the country at present. According to the official, the company currently has an adequate supply for the next five days.

Responding to reports of scarcity and possible black marketing, the official said the situation appears to be driven by panic booking rather than hoarding or illegal trade. “It’s not a case of black marketing. It’s a case of panic booking. If people feel something is getting scarce, they tend to book even if they already have sufficient stock.” 

Also read: RIL Erases Gains, Dips 0.8% Despite Trump’s $300B Texas Refinery Deal

Published By : Shourya Jha

Published On: 11 March 2026 at 13:33 IST