A sharp shortage of commercial LPG cylinders is disrupting restaurant kitchens in Mumbai, Bengaluru, and Chennai, with potential shutdowns if supplies do not resume.

The disruption is tied to broader West Asia tensions and oil-price concerns after strikes on Iran, affecting global fuel markets and reducing LPG imports.

Industry bodies warn thousands of hospitality livelihoods are at risk as the crisis deepens and commercial supply dwindles.

FHRAI has appealed to the Petroleum Minister for government intervention and a formal clarification on the LPG supply situation.

A government directive, echoing an earlier order, uses the Essential Commodities Act and related rules to safeguard domestic fuel but prioritizes households over commercial users.

The government asserts stock adequacy and ongoing stabilization efforts, while hospitality associations urge urgent action from the Union Minister for Petroleum and Natural Gas.

Authorities have invoked the Essential Commodities Act, ordered refineries to boost LPG production, and formed a committee to review hotel and restaurant supply requests, prioritizing essential non-domestic users.

The ministry has also redirected refinery output toward domestic consumption, imposed a 25-day refill gap to curb hoarding, and created a three-member committee of Oil Marketing Company executives to assess commercial-sector needs.

FHRAI and NRAI are calling for government intervention to prevent further disruptions to essential food services and business operations.

The hospitality sector is deemed essential due to its role in employment and urban food supply, a status recognized during the COVID-19 pandemic.

Household panic buying is increasing demand pressures as some seek subsidised cylinders, raising safety concerns.