Hotels, restaurants across India grapple with gas shortage as West Asia conflict prolongs
India faces a commercial LPG shortage affecting hotels and restaurants due to the prolonged West Asia conflict disrupting supplies through the Strait of Hormuz. This has led to operational halts and warnings of closures nationwide.
Major metros like Bengaluru, Mumbai, Chennai, Pune, and Delhi report severe disruptions, with 20% of Mumbai hotels already shut and Bengaluru associations predicting citywide closures from March 10. In Jabalpur, Madhya Pradesh, commercial gas supply has completely stopped, threatening local hotels, restaurants, and even pre-booked events, while prioritizing hostels and hospitals.
The conflict heightens risks for LNG and LPG shipments from the Middle East, which supplies 85-90% of India’s imports; India relies on these for about half its natural gas needs. Government prioritization of domestic/household use via natural gas diversion exacerbates commercial shortages.
Authorities invoked the Essential Commodities Act, directing refineries to boost LPG output by 10% at full capacity, prioritizing households, CNG, and essentials like hospitals. A committee reviews commercial requests, refill cycles extended to 25 days to curb hoarding, and India scouts alternative suppliers like Algeria and Australia. Officials assure no household crisis but acknowledge commercial strain.
