The Effects Of The Global Energy Crisis Reach India’s Restaurants
India’s hospitality sector faces a commercial LPG shortage amid the escalating Iran–Israel crisis, forcing restaurants in Bengaluru, Mumbai, and Chennai to cut operations and warn of potential shutdowns
The escalating conflict in the Middle East involving Iran, Israel and their allies is beginning to impact India’s hospitality sector, with hotels and restaurants in cities such as Bengaluru, Mumbai and Chennai reporting shortages of commercial LPG cylinders. The disruption is linked to volatility in global energy supply chains, as tensions in West Asia have affected fuel shipments and raised concerns over LPG availability.
India relies heavily on LPG imports, a large share of which passes through the Strait of Hormuz, a key energy shipping route in the Gulf. Disruptions in this corridor have constrained supplies, prompting authorities to prioritise LPG distribution for household consumption. As a result, commercial users such as hotels and restaurants, which depend on larger market-priced cylinders, are experiencing tightening supplies in several major cities.
On March 9, the Bangalore Hotels Association, which represents thousands of eateries across the city, announced that restaurants and hotels in Bengaluru will cease operations from March 10 due to the sudden suspension of supplies.
While this is a huge blow to restaurants and hotels across the city, the announcement points to a larger issue. The shortage will impact people who rely on hotels and restaurants for their daily meals and also threaten supplies to hospitals, schools, and office canteens.
“Oil companies had assured that there would be no disruption in gas supply for at least 70 days. The sudden stoppage is a devastating blow to the hotel industry,” read the association’s statement.
Chef Rahul Sharma, who recently launched Nila, a 24-seater, chef-led restaurant in Bengaluru’s Ulsoor, said, “Our cylinder supplier had promised us no hiccups, but two days ago, we received a notification from him about the possibility of a supply cut.” He mentioned how their current stock will only last them a few more days, after which a restock will become crucial.
Situation Remains Critical In Chennai And Mumbai
After Bengaluru, similar reports of commercial LPG shortage have also come in from restaurants and hotels in Chennai and Mumbai. In a letter addressed to Prime Minister Narendra Modi, the president of the Chennai Hotel Association, N. Ravi, said the situation across the city’s eateries is becoming “critical” and appealed for action to be taken at the earliest. He mentioned that commercial LPG distributors have completely stopped supplying cylinders, stating they have no stock available.
Reports from Mumbai suggest that many restaurants in areas like Andheri, Dadar, and Matunga have reduced their operating hours and dropped some dishes from their menus to conserve their LPG reserves.
For an industry that runs almost entirely on commercial LPG for daily operations, even a short disruption can have far-reaching consequences. And stakeholders from the industry are hoping for the supply chain to be stabilised so restaurants and hotels across India are not forced to scale back operations or temporarily shut down.
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