LPG shortage hits Bengaluru eateries, hotels warn of shutdown

• Bengaluru hotels face LPG shortage due to West Asia tensions
• Domestic LPG supply prioritized; hotel deliveries disrupted
• Ministry ramps up LPG production, urges against panic booking

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Bengaluru's hotels and eateries are grappling with a severe shortage of commercial LPG cylinders due to escalating geopolitical tensions in West Asia, even as the government prioritises supplies for households.

Read : City-wise LPG cylinder rates today 

Read: LPG shortage in Hyderabad

The Bangalore Hotels Association has warned that small and medium-scale establishments could be forced to shut temporarily if the disruption persists. PC Rao, honorary president of the association, was quoted by TOI as saying that: "Only about 10% of hotels and restaurants in Bengaluru received their LPG supply today. We have gas to keep our kitchens running only until Tuesday afternoon or evening."

The report cited distributors as saying they received instructions from the Union Ministry of Petroleum and Natural Gas to prioritise LPG for domestic consumers. Establishments using piped gas networks, which account for around 10 to 15 per cent of the city's hotels and restaurants supplied by GAIL (India) Limited, remain unaffected.

The shortage has spilled over to households, with domestic gas agencies in Bengaluru reporting a sharp surge in calls and online bookings on Tuesday. Ashok Mahadevappa K of Indian Oil Corporation Limited said agencies are receiving frequent enquiries from customers worried about possible shortages. “We are getting at least 10 calls every hour from people asking whether cylinders are available. Even online bookings have increased significantly,” he said, according to a Hindu report.

Dealers insisted there is no actual shortage for homes, describing the issue as a temporary strain from heightened demand. A representative from HP Gas was cited as saying by The Hindu that deliveries that would normally take one or two days may now take up to five days until demand stabilises.

The representative stated that there is no shortage of cylinders for domestic consumers. However, because many people are trying to book at the same time, deliveries may be delayed slightly. The official urged consumers not to panic or stockpile cylinders unnecessarily, warning that such behaviour could affect those who urgently require them.

The representative further noted that once news about hotels facing LPG issues started circulating, many households assumed there would be similar disruptions for domestic cylinders. He clarified that household LPG supply continues as usual, adding that the government has also stated that domestic consumers will be prioritised.

In response to the crisis triggered by the West Asia tensions, the Ministry of Petroleum and Natural Gas has directed oil refineries to ramp up LPG production, channelling the additional output specifically for domestic use. "In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," the ministry announced on X.

To curb hoarding and black marketing, the ministry introduced a 25-day inter-booking period for consumers. "The ministry has prioritised domestic LPG supply to households and introduced 25 day inter-booking period to avoid hoarding/black marketing," it said.

For non-domestic sectors, imported LPG supplies are being prioritised for essential users such as hospitals and educational institutions. "Non domestic supplies from imported LPG is being prioritised to essential non domestic sectors such as Hospitals and Educational institutions," the ministry added. It added that a committee of three executive directors from oil marketing companies has been constituted to review representations for LPG supply to restaurants, hotels and other industries.