Restaurateurs in Hyderabad face concerns over commercial LPG supply; city is home to over 74,000 restaurants

Hyderabad's 74,000 restaurants face potential LPG supply disruptions, raising concerns about operations and business continuity in the food industry.

Hyderabad, home to more than 74,000 restaurants with an estimated business turnover exceeding ₹5 lakh crore, is beginning to witness early signs of uncertainty in the supply of commercial Liquified Petroleum Gas (LPG), raising concerns within the city’s food industry. The figure was shared by the National Restaurant Association of India (NRAI) in 2024, and industry representatives believe the number of establishments has only increased since then.

Amidst the ongoing conflict in West Asia, restaurant operators say vendors have started indicating possible disruptions in commercial LPG supply, though an immediate shortage has not yet been reported in Hyderabad. The situation remains uneven, with some suppliers continuing deliveries while others have warned of constraints in the coming days.

“We are in contact with our restaurant members and what we are gathering is that a vast majority of restaurant operators rely on LPG. Very few rely on electricity. As of yesterday (March 9, 2026) there were no supply disruptions, but we are now starting to hear people being informed that they may not get LPG supplies,” said Sandeep Balasubramanian, head of NRAI Hyderabad Chapter.

The concern comes amid reports on disruptions in commercial LPG supply — in multiple cities across India — which is widely used in restaurant kitchens. “If supplies are not available, we will be forced to shut down because it is impossible for the majority of restaurants to function without LPG,” he said.

Mr. Balasubramanian added that the NRAI is currently in discussions with the Union Ministry of Petroleum and Natural Gas, oil companies and distributors to address the issue. He said the association has urged the government to treat LPG supply for restaurants as an essential service if the disruption continues. “During COVID, food services were treated as essential and supplies were maintained. We are urging the government to look at the situation in a similar manner,” he said.

Kavitha Mantha, managing partner of Sage Farm Cafe and Ciao Italiano said that while restaurants may be able to manage a short-term disruption, a prolonged shortage could significantly affect operations. “If this is a short-term crunch, most of us should be able to pull through without operational issues. But if this continues to become a long-term issue, we will dramatically suffer because we are highly dependent on LPG,” she said.