LPG Supply Crisis in Mumbai: Hotels, Restaurants Struggle as Cylinder Shortage Worsens

Mumbai LPG shortage: A sudden shortage of LPG cooking gas cylinders in Mumbai has triggered a lot of panic among hotels, restaurants, and households, raising concerns over disruptions in food services across the city.

The main reason for LPG cooking gas shortage is the Middle East supply disruptions from the US-Israel-Iran conflict blocking the Strait of Hormuz.Domestic supplies are prioritized, but delays and panic buying are widespread in cities like Mumbai, Bengaluru, Delhi, and Hyderabad.

Restaurant operators say the supply of LPG cylinders has slowed majorly with waiting times for refills going up to a week in some areas. The LPG shortage is affecting both commercial kitchens and residential consumers, forcing many businesses to struggle with daily operations.

Hotels and restaurants in panic mode

The shortage of commercial LPG cylinders in Mumbai is severely impacting restaurants and hotels that rely heavily on LPG for cooking.

The National Restaurant Association of India (NRAI) has raised concerns over the situation and warned that prolonged disruption in LPG supply could severely affect the city's food service sector.

As reported by NDTV Profit, the NRAI has written to the Union Ministry of Food Processing Industries regarding the issue. In its communication, the association talked about the urgent need to ensure uninterrupted supply of commercial LPG cylinders to restaurants and hotels.

According to the association, any prolonged disruption in the supply of LPG cylinders could lead to the closure of a large number of restaurants, severely affecting thousands of workers employed in the hospitality sector.

Government explains LPG supply constraints

The Ministry of Petroleum and Natural Gas said the supply disruptions are linked to global geopolitical developments affecting fuel supply chains.

In a statement, the ministry said: "In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use."

The government added that domestic LPG supply to households has been prioritised to ensure that essential cooking fuel remains available for residential consumers.

Measures to prevent hoarding

To prevent hoarding and black marketing of LPG cylinders, the government has introduced a 25-day inter-booking period for domestic LPG refills.

The ministry also said that non-domestic LPG supply from imported sources is being prioritised for essential sectors such as hospitals and educational institutions.

For other commercial users, including restaurants, hotels and industries, the government has formed a special review committee.

According to the ministry, a committee comprising three Executive Directors (EDs) from oil marketing companies (OMCs) will examine representations related to LPG supply from commercial sectors. The committee will review requests and determine how LPG supply can be allocated among restaurants, hotels and other industries without affecting essential services.