A shortage of commercial LPG cylinders across India is beginning to affect hotel and restaurant operations, as supply disruptions linked to the ongoing tensions in the Middle East impact distribution across several cities.

The crisis is reportedly connected to geopolitical tensions involving Iran, Israel and the United States, which have disrupted LPG imports and created supply challenges for commercial establishments across the country.

Several hotels in Bengaluru have reportedly shut operations due to the shortage, while restaurants and hotels in Chennai began witnessing scarcity of commercial LPG cylinders since this morning. The disruption has affected kitchens that rely heavily on commercial gas for daily food preparation.

At the same time, the waiting period for consumer LPG cylinder bookings has reportedly been extended from 21 days to 25 days. This means households can now place a new order only after 25 days from the previous booking.

In a recent statement, Indian Oil Corporation said it has temporarily paused deliveries of commercial LPG cylinders and advised customers to explore alternative arrangements until the supply situation stabilises.

The shortage has also affected other major cities including Mumbai. Industry estimates suggest that nearly 20 percent of hotels and restaurants in the city have already shut operations, with as many as 50 percent at risk of closure in the next two to three days if the situation continues.

The Bangalore Hotels Association has expressed concern over the sudden halt in supply. In a statement, the association said, “Since the gas supply has stopped, hotels may have to close from tomorrow.” It also highlighted that hotels play an important role in providing daily meals for students, medical professionals and the general public.

Association president PC Rao said that despite earlier assurances from oil companies that supply would remain uninterrupted for 70 days, the sudden disruption has come as a “big blow” to the hospitality sector.

Industry bodies including the Federation of Hotel and Restaurant Associations of India (FHRAI) and the National Restaurant Association of India (NRAI) have formally requested government intervention. The organisations have cited widespread distribution disruptions and supplier hesitancy even though commercial LPG supply to restaurants was expected to continue without restrictions.

The impact is also visible in food delivery operations. Restaurants operating through platforms such as Zomato and Swiggy are witnessing reduced order volumes in certain areas due to kitchen limitations and temporary closures.

Smaller eateries and independent restaurants are expected to face the greatest impact as they depend entirely on LPG cylinders for cooking. Larger chains with alternative systems such as piped natural gas or electric kitchens have been able to continue operations with fewer disruptions.

Some establishments have already begun adjusting operations. A statement from Annapoorna Restaurant noted that the popular eatery will reduce operating hours and limit menu varieties until the supply situation improves.

The shortage could also lead to price increases for everyday food items such as tea, coffee and quick meals if the disruption continues for longer periods.

According to industry estimates, India consumes about 31.3 million tonnes of LPG annually, with nearly 87 percent used by households and the remaining share supplied to commercial establishments such as hotels and restaurants.

The government has begun responding to the situation by increasing refinery production and prioritising supply for essential sectors. Officials have also indicated that adequate stock is available through alternate supply routes, suggesting that the disruption may be temporary.

Industry experts believe the hospitality sector could face short-term operational challenges over the next three to seven days, after which supply is expected to stabilise as domestic production increases and logistics are restored.