There has been a rising number of restaurants and hotels in Mumbai closing down due to a shortage of commercial LPGs; with these shortages continuing to plague suppliers, there is concern that the crisis could worsen dramatically unless supply issues are resolved quickly.
According to trade unions representing restaurants in Mumbai, they currently warn that if supply problems persist, as many as 50% of restaurants/cafes around the city could close within two days.
The LPG shortages are seen as a consequence of ongoing conflicts in West Asia – between Israel and the US on one side and Iran on the other – which have disrupted global supply chains and which, in turn, have begun impacting energy logistics and local distribution of LPG from those sources to businesses in Mumbai.
Restaurant owners across the city are reporting they are having days of difficulties acquiring commercial LPG cylinders.
Hotels Resort to Rationing and Alternative Measures
Many restaurants are reducing menu items, decreasing cooking times and looking for other alternative sources of fuel with their supply chains diminishing. Some operators of restaurants have reported purchasing LP Gas [LPG] cylinders from the black market at a much higher cost just to continue to operate their kitchens.
Operators of restaurants say that the situation has started to deteriorate substantially over the past few days, which will have forced many restaurants to cease operating temporarily.
The industry [a representation] of the Indian Hotel and Restaurant Association indicates that if the current situation is not corrected, a large number of involved restaurants will have to close their doors.
Government Says Domestic LPG Supply Is Priority
The Maharashtra government recognises that hospitality industries face several hardships, but they believe supplying domestic liquefied petroleum gas (LPG) must be the number one priority. Mr Bhujbal stated that the government had been speaking with the restaurant associations in regard to this crisis; however, he was unsure of how to create a consistent supply of LPG to commercial businesses due to not being able to compromise on the needs of the household. He suggested that kerosene could be used as a temporary substitute for LPG; however, restaurateurs are concerned about switching fuels due to safety and infrastructure issues.
Restaurants Paying More to Stay Open
In order to remain operational, some restaurants already continue to purchase LPG cylinders at much higher prices than before. A restaurant owner from Mumbai has stated that their restaurant has been having trouble with gas availability for many days in a row, and, as a result, they are paying roughly 30% above their normal price for LPG.
Chain owners have indicated that it is even more difficult for restaurant chain owners who have multiple locations, as finding sufficient numbers of gas cylinders has become almost impossible.
LPG cylinders are becoming more expensive and increasingly hard to find on the black market as well, restaurant operators say.
Shortage Spreading Beyond Mumbai
Industry groups say the crisis is not limited to Mumbai alone.
The Hotel and Restaurant Association of Western India reported receiving complaints about LPG shortages from several cities, including:
- Pune
- Aurangabad
- Nagpur
Similar disruptions have also been reported in states such as:
- Delhi
- Karnataka
- Telangana
- Andhra Pradesh
Industry leaders warn that if supplies remain unstable, the crisis could spread across multiple regions.
Millions of Livelihoods at Risk
Hospitality associations say prolonged disruption could have a major economic impact.
According to the Federation of Hotel and Restaurant Associations of India, the food service sector supports:
- 40 lakh direct jobs
- 60 lakh indirect or self-employed workers
- Nearly 2 crore people dependent on the industry
Associations have appealed to Hardeep Singh Puri to review the current supply directive to prevent widespread closures.
Also Read: LPG Crisis Looms: PM Modi Holds Emergency Talks as Iran War Disrupts India’s Gas Supply
