LPG cylinder shortage forces Hyderabad hotels to scale down menus, possible closure clouds establishments

Hyderabad hotels face LPG cylinder shortages, forcing menu cuts and potential closures as supply uncertainty threatens operations.

The uncertainty over LPG cylinder availability has forced operators of restaurants in Hyderabad to rethink kitchen operations, reduce the number of dishes prepared and ration available gas supplies to keep outlets running for as long as possible.

Rajesh Reddy Paduru, founder of Tazaa Tiffins, which operates multiple outlets in Hyderabad, said his outlets currently have LPG stock that may last up to a week, but the lack of clarity over future supply has created operational concerns. “We are planning to adjust menus to conserve gas. Items such as vada, puri and Mysore bhajji may be limited to specific hours of the day, while dishes like dosa and idli will continue to be served throughout the day,” he said.

Meanwhile, other industry representatives said reducing menu items may not significantly lower gas consumption for certain foods that require continuous heating. Nanda Kishore Gupta, managing director of Sri Raghavendra Hotels, said the shortage has already pushed up cylinder prices sharply while supply remains inconsistent. “We usually get a 19 kilogram commercial LPG cylinder for around ₹1600 to ₹1700, but now the price if a person has to buy it in black has gone up to around ₹3000. Even at that price, cylinders are not easily available,” he said..

The Sri Raghavendra Hotels chain operates 45 outlets in Hyderabad, many of which currently have LPG stock that may last only two to three days. Mr. Gupta warned that if supplies do not improve soon, several outlets could run out of gas by mid-March. “If the situation continues, most branches may run out of LPG by March 15,” he said. 

He explained that certain dishes, particularly dosa, require a continuous gas supply, which makes it difficult for restaurants to significantly reduce consumption. “Even if we cut down on some items, this remains a challenge,” he said. 

Ch. Venu Gopal, secretary of the Telangana State Hotels Association (TSHA), said the situation worsened from March 9 evening when the supply of commercial LPG cylinders stopped in several parts of the city. He added that most hotels require at least three to four cylinders at a time for their kitchen pipeline systems to function properly, and many establishments may struggle to sustain operations without regular replenishment.