Indian hotels grapple with gas shortage as West Asia conflict prolongs

Indian hotels face potential shutdowns due to cooking gas shortages amid ongoing West Asia conflict disrupting supply chains.

Hoteliers across various States have flagged shortage of cooking gas supply and have urged the government to ensure uninterrupted supply of fuel.

The National Restaurant Association of India (NRAI), Indian Hotel and Restaurant Association (AHAR), Bengaluru Hotels Association, Chennai Hotels Association, Chennai Tea Shops Association, the Hotel & Restaurant Association of Odisha (HRAO), and several hoteliers have warned that non-availability of cooking gas would force many units to shut their shops.

“The restaurant industry is predominantly dependent on commercial LPG for its operations,” NRAI said in a statement. “Any disruption therein will lead to a catastrophic closure of majority of restaurants.”

Several small eateries in Bengaluru limited their services to tea and coffee on Tuesday (March 10, 2026). The Sree Annapoorna Sree Gowrishankar Group, a Coimbatore-based prominent eatery chain, put out a notice on Monday night (March 9, 2026) informing customers that it will limit its menu to essential items, and the availability of some items will be restricted to specific hours of the day.

Around 20% of hotels and restaurants in Mumbai have shut down, with associations projecting that nearly 50% of hotels and restaurants in Mumbai will shut down in two days if the situation doesn’t improve. “We understand the reason but instead of blanket stoppage, the supply should continue for at least 25%, so the hotels can survive somehow,” a representative of AHAR, the apex body for the hospitality trade in Maharashtra, said.

The cooking fuel shortage has affected paying guest accommodations and hostels in Hyderabad. Managers and supervisors of large paying guest facilities, particularly in the IT hubs such as Gachibowli, Kukatpally and Madhapur, fear disruption to meals preparation. “The supply has dropped drastically, by 75%. If we used to order around 100 cylinders earlier, we are now receiving barely 20 to 25,” says Lakshmi of Amulya Grand Luxury Women’s PG in Gachibowli. “If this continues for long, we may struggle to cook meals for all our residents.”