Mumbai's Hospitality Sector Struggles Amid LPG Supply Crunch

Mumbai’s hospitality sector is raising the alarm over a growing shortage of commercial LPG cylinders, a critical resource for restaurant kitchens. The Indian Hotel & Restaurant Association (AHAR) has warned that the shortage has already forced some establishments to temporarily close operations, disrupting daily cooking and business activities.

The government has emphasized the protection of household LPG supplies, with Atul R Shah, Executive VP of the All India LPG Distributors Federation, stating that India has about three months of LPG supply reserved for households. If diverted for commercial use, this reserve could be exhausted in just 15 days. The priority is to safeguard the supply for 1.4 billion people, and a review team from Indian Oil, Bharat Petroleum, and Hindustan Petroleum is evaluating urgent requests from hospitals and other critical services.

Restaurants are flagging operational risks due to the LPG shortage. Suraj Shetty, a restaurateur from Mahesh Lunch Home and Banana Leaf, explains that restaurants depend on a consistent and reliable supply of commercial cylinders. The shortage is creating significant operational challenges across the hospitality sector. AHAR has also accused roadside vendors of using domestic LPG cylinders meant strictly for households, creating what it calls an uneven playing field.

Some restaurants are preparing for potential disruptions by implementing contingency measures. Ashesh Sajnani, founder of Le Cafe and Via Bombay, has already installed induction units at his Goa hotel, The Passport Hotel, as a precaution. Other kitchens are considering the following steps: - Removing fuel-intensive dishes - Cutting slow-cooked menu items - Switching to induction cooktops - Considering a return to coal tandoors

The government has taken steps to address the LPG shortage by invoking the Essential Commodities Act, 1955, to ensure a stable and uninterrupted supply of cooking gas. This act covers airline food services, which depend on LPG and other regulated supplies for large-scale meal production. Major players in this sector include Taj SATS Air Catering Limited, Ambassador’s Sky Chef, Sky-gourmet Catering Private Limited, and Oberoi Flight Services. Industry sources indicate that operations are expected to remain unaffected by the current shortage.

However, some industry players are skeptical about the extent of the shortage. Abhayraj Singh Kohli, a partner at Pritam da Dhaba and The Roll Company, and founder of Grandmama’s Cafe, MRP, TORII, and Nakhra, suggests that the fears may be partly driven by speculation. “It’s not just a supply crunch — it’s panic engineered by black marketers trying to cash in. This LPG crisis has exposed how fragile our fossil-fuel dependence really is. The restaurant industry in Mumbai must now seriously explore electric induction and other clean alternatives before the next shock hits,” Kohli said.

In Bengaluru, residents have reported unauthorized bookings on their Indane gas accounts, preventing them from ordering cylinders. Madhu Menon, a Bengaluru resident, alleged that unknown phone numbers were linked to his account, and bookings were made without his knowledge. After raising the issue on social media, he received a cylinder delivery, but the delivery driver claimed it was a mistake and asked him to delete his tweet.

The extended refill timeline is creating operational stress for kitchens that rely on a steady supply of commercial cylinders. Key numbers include: - Cost of one commercial LPG cylinder: Rs 1,835 - Typical refill cycle for restaurants: 21 days - New official minimum waiting period: 25 days - Domestic LPG buffer stock: 3 months

The government has revised natural gas allocation priorities amid the escalating West Asia conflict. Priority sectors for gas supply include domestic LPG, CNG for vehicles, and piped cooking gas for households. Gas allocation to sectors such as petrochemicals has been reduced to protect essential consumption. India has approximately 33 crore active LPG consumers, highlighting the scale of the challenge in managing supply and demand.