Dr. Gyan Pathak
Though the government of India has assured that there are enough oil and gas resources in the country, and there is no reason for public to panic, hotels and eateries in several cities in Maharashtra, Karnataka, Tamil Nadu and elsewhere have shut down causing great difficulties to those who depend on them for food – which included students, patients, travellers, and others.
Some sort of panic has spread across the country after the Bengaluru Hotels Association said that hotels and eateries in the city sill shut down from tomorrow. It has been reported that the supply of gas cylinders for commercial use has been stopped from March 9, 2026.
Industry bodies have said that the shortage of commercial cylinder supply in already being felt in other cities too, such as Mumbai and Chennai, where eateries rely heavily on commercial cooking gas for their daily operation.
Government has said that it has prioritized domestic LPG supplies for households to ensure that it remains available for them. However, for the hotels or restaurant industries, the government has formed a panel of three Executive Directors of Oil Marketing Companies to examine requests for LPG supply for them.
In Karnataka, the Deputy CM D K Shivkumar has said today that the state’s entire hotel and commercial industry have been affected. The Hotel association has said that sudden stoppage of supply of commercial cylinders has compelled the hotels to shut. The president of the association PC Rao has said yesterday that only about 10 per cent of hotels and restaurants in Bengaluru had received LPG supply on March 9, and they could keep their kitchens running only until afternoon of March 10.
It Maharashtra, the Mumbai Hotels and Restaurants Association has said that around 20 per cent of hotels in the city have already closed. It has also warned that nearly 50 per cent may have to shut down soon if the supply situation does not improve. LPG dealers have said that the disruption has already affected the availability of cooking gas, and consumers facing delays in delivery between two and eight days. Supply of commercial cylinders has been completely at halt.
It is not only the food or cooking that is affected by the LPG crisis. It has widened to crematoriums run by LPG. In Pune, the municipal Commissioner, Naval Kishor Ram has said that out of 27 crematoriums in the city, 18 are temporarily shut due to break in supply of LPG.
In Tamil Nadu, Chennai city is witnessing heavy shortage in LPG supply. The hotel associations have appealed directly to Prime Minister for urgent LPG supply restoration. Hospitality sector, hotels, restaurant, and all sorts of eateries have been affected.
In Rajasthan, Oil and marketing companies have halted fresh booking for commercial LPG cylinders across the state. Food vendors, dhabas, and restaurants reported supply disruptions.
In West Bengal, reports of crisis have been coming from Kolkata. Short supply of commercial cylinders has become a concern for the hospitality and hotels sector in the state. Restaurant bodies have reported irregular supply of commercial cylinders there.
Telangana, Uttar Pradesh and other major states are also affected due to short supplies. Long queues and panic buying were also reported after rumours of LPG and fuel shortage. However, household supply disruptions have not been widely confirmed.
The crisis has impacted hospitality industry, since restaurants and hotels heavily depended on commercial LPG. Industry bodies have warned of mass shutdowns if supply is not restored quickly. Small businesses are also affected which included street food vendors, dhabas, catering business, and bakeries. Food delivery ecosystem may be impacted soon along with the public utilities, such as gas based crematoriums and institutional kitchens.
Karnataka, Maharashtra, Tamil Nadu, Rajasthan, and West Bengal are feeling the strongest impact of the crisis. LPG penetration is highest in Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Telangana, Punjab and Himachal Pradesh where penetration level is between 95-100 per cent. Southern states have about 98% LPG penetration, among the highest in India.
Medium penetration states are Maharashtra, Gujarat, Haryana, West Bengal, and Uttarakhand. LPG penetration in these states are between 85 and 95 per cent. Lower penetration between 70 and 85 per cent are in the states Bihar, Jharkhand, Odisha, Assam, and Chhattisgarh, where many households still rely partly on biomass and coal.
Lowest penetration states are all the states in the North-East India and Tribal belts. LPG penetration there is between 70 and 75 per cent. These regions still depend heavily on traditional cooking fuels.
Given the penetration and the demography, high-risk states are – Uttar Pradesh, Maharashtra, West Bengal, Tamil Nadu, Karnataka, and Rajasthan. Mediums risk states are – Bihar, Odisha, Madhya Pradesh, and Chhattisgarh. Gujarat, Delhi, and North East states are lower risks states. Gujarat has high PNG penetration, Delhi has PNG and electricity, and North East states have mixed fuel consumption.
In the meantime, Union Ministry of Petroleum and Natural Gas has directed refineries to ramp up LPG production and divert the additional LPG specifically for domestic consumption. The gap between LPG refill booking has been increased from 21 days to 25 days to avoid hoarding and black marketing. The government insists domestic household supply is being protected, but the crisis has already caused disruptions in several states. LPG prices were raised by about Rs 60 per 14.2 kg cylinder across major cities. Price Increase for 19 kg commercial cylinder was between Rs114.50 to Rs115. The Centre has invoked Essential Commodities Act to control supply and prevent hoarding. Government is also exploring additional LPG imports from the US and Canada.
Some state governments have also taken steps on their part, such as Pune Municipal Corporation shifted to electric crematoriums. However, it should be noted that the states do not control LPG supply directly, since it is largely handled by Oil and Marketing Companies and Union Ministry of Petroleum. (IPA )
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