LPG shortage shuts 20% of Mumbai eateries, industry warns of wider closures

LPG shortages caused by the West Asia conflict threaten to shut down half of Mumbai's restaurants, impacting livelihoods significantly.

The ongoing conflict involving Israel, United States and Iran has begun affecting domestic supply chains, with disruptions in commercial LPG supply hitting the hotel and restaurant sector in Maharashtra. Hoteliers have begun adopting menu rationing, slow cooking, and purchasing gas cylinders from the black market.

In Maharashtra, around 20% of hotels and restaurants in Mumbai have shut down, with associations projecting that nearly 50% of outlets in the city could close within two days if the situation does not improve. “One more day, the percentage will increase. 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 the Indian Hotel and Restaurant Association, the top body for the hospitality trade in the State, said.

“I spoke to the Chief Minister, but continuing the supply for commercial use at 25% looks difficult as the domestic supply cannot be jeopardised,” Chhagan Bhujbal, Minister for Food, Civil Supplies and Consumer Protection of Maharashtra, said suggesting using kerosene. However, he added that after discussions with the hotel association he understood that there are infrastructural challenges and risks involved.

The AHAR claimed that 20% of hotels have already shut down in Mumbai and appealed to Union Minister for Petroleum and Natural Gas Hardeep Singh Puri to reconsider the directive to prevent a widespread crisis.

Mumbai-based fine-dining restaurant East Asia has been affected by the LPG shortage and is paying higher prices to continue operations. “To keep running our restaurant, we are paying at least 30% more than what you used to pay for the LPG. We are somehow running our boat,” operations head Amar Jinwal said. The restaurant has faced an LPG crunch for the past four days and is exploring the option of using induction cooking, though it does not appear feasible.

Another restaurant chain owner, who did not wish to be named, said, “I have to run more than seven outlets, procuring LPG has become difficult even in the black market. The prices has sky-rocketed.”