Iran-Israel war: LPG crisis hits hotels in Bengaluru, Chennai, Mumbai; panic grips Hyderabad

Bengaluru hotels decided to resume operation after a brief shutdown due to the shortage of LPG cylinders in the market. Chennai has sounded an alarm.

By -  Newsmeter Network
Published on : 10 March 2026 11:22 AM IST

Iran-Israel war: LPG crisis hits hotels in Bengaluru, Chennai, Mumbai; panic grips Hyderabad

Hyderabad: The food and beverage industry in Bengaluru, Chennai, and Mumbai has raised an alarm over the shortage of commercial LPG cylinders.

Bengaluru hotels decided to resume operation after a brief shutdown due to the shortage of LPG cylinders in the market. Chennai has sounded an alarm.

On the other end, the Union Petroleum Ministry has increased the booking period from 21 to 25 days.

"The supply of gas cylinders for commercial use has been stopped from today. In addition, our hotel industry will also have to face difficulties until the gas supply returns to normal. Oil companies had said that there would be no disruption in gas supply for 70 days. However, the sudden stoppage of supply is a big blow to the hotel industry. Hotels will be closed from tomorrow due to the gas supply being cut off. Bengaluru is the first metro to call for a closure,โ€ Bangalore Hotels Association said in a notice on March 9

However, in a late-evening press conference, the Association clarified that hotels will not close. It stated that establishments will continue operations until the last drop of gas available to them is exhausted.

However, some hotels that lack storage facilities and do not receive a gas supply today may remain closed tomorrow if cylinders are not delivered by morning.The Association has raised the issue with both the state and central governments and expressed hope that gas supply will resume from tomorrow.

Chennai

The situation has now become even more critical. Commercial LPG distributors have completely stopped supplying cylinders, stating that they have no stock available. As a result, many restaurants are forced to shut down.

Hyderabad

Though there is no immediate scarcity of LPG cylinders (domestic & commercial) in Hyderabad, desperate bookings have led to a delay in delivery.

โ€œThe Israel-Iran war has scared people of India over the scarcity of gas and fuel. People have started to desperately book, leading to incase in demand and a delay in supply. As of today, there is no scarcity in Hyderabad,โ€ an HP gas dealer told NewsMeter.

What does the Ministry say?

Union Petroleum Ministry has asked oil refineries for higher LPG production and to use such extra production for domestic LPG use.The Ministry has prioritised domestic LPG supply to households and introduced 25 day inter- booking period to avoid hoarding/black marketing. Non-domestic supplies from imported LPG are being prioritised to essential non-domestic sectors such as Hospitals and Educational institutions.For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs has been constituted to review the representations for LPG supply to restaurants/hotels/other industries.

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