Bengaluru hotels to shut down, Chennai hoteliers write to PM over LPG shortage; crisis in Kerala
THE Chennai Hotels Association has appealed to Prime Minister Narendra Modi, seeking urgent intervention to ensure an uninterrupted supply of commercial LPG to restaurants and the food industry.
In a letter dated 9 March, 2026, the association said the recent notification by the Central government temporarily suspending commercial LPG supply due to shortages could severely affect restaurants and food-related businesses.
The association also noted that the food industry operates round-the-clock and plays a crucial role in supplying meals to hospitals, IT parks, college hostels, train passengers, and business travellers. Any disruption in LPG supply, it warned, would impact these services and inconvenience the public.
It further pointed out that many star hotels and restaurants have already undertaken banquet bookings, which could also be affected if the LPG shortage continues.
The association said a shortage of commercial LPG would disrupt food supply chains and affect a large section of the public across Tamil Nadu.
Urging immediate action, the body requested the Prime Minister to direct the concerned authorities and oil companies to treat LPG as an essential commodity for the food industry and ensure regular supply without hindrance.
The letter, signed by association president M. Ravi, has also been copied to Union Petroleum and Natural Gas Minister Hardeep Singh Puri.
Bengaluru hotels to remain shut
Meanwhile, Bengaluru Hotel Association on Monday announced that they would remain closed from Tuesday, 10 March, until further notice.
According to a Hindu Business Line report, the association said in a statement, “The oil companies had earlier informed that there would be no disruption in gas supply for up to 70 days. Despite this assurance, the sudden stoppage of supply has come as a major blow to the hotel industry.”
The statement further read: “Therefore, we expect the concerned Union Ministers to take appropriate action in this matter immediately and resume commercial gas supply and provide cooperation to the hotel industry.”
Kerala hotels warn of imminent shutdowns
Kerala’s hospitality sector is also staring at a potential crisis as an acute shortage of commercial LPG cylinders disrupted operations across the state, according to representatives of the hotel and restaurant industry.
Bipin Thomas, state committee member of the Kerala Hotel and Restaurants Association, said an internal assessment conducted by the association across all 14 districts indicated that the situation was rapidly worsening.
A large number of hotels and restaurants have already exhausted their LPG stocks, forcing many establishments to ration cooking gas and scale down operations.
“Several district units informed us that most hotels and restaurants no longer have reserve LPG cylinders. Many are already rationing usage, and the cylinders currently in use are likely to run out soon,” Thomas told South First.
Industry representatives said they were also informed that authorities had advised prioritising the supply of LPG cylinders to essential services, particularly canteens functioning in hospitals and healthcare institutions.
With no immediate clarity on replenishment, many eateries may have to temporarily shut down once their remaining cylinders are depleted.
Others could be forced to suspend operations within the next few days if supplies are not restored, Thomas warned.
In response, the association has asked its district units to explore alternative arrangements wherever possible.
“We have advised members to switch to firewood if feasible, or even cook from home-based kitchens as a temporary measure,” he said.
Tourism affected
The uncertainty has already begun affecting tourism-related business.
According to Thomas, several establishments have started cancelling bookings from tourists and visitors from other parts of the country due to concerns about their ability to provide meals.
“We are worried that we may not be able to serve food to guests if the shortage continues. Many hotels have begun cancelling reservations,” he said, adding that the association is closely monitoring developments while hoping that supplies resume soon.
Earlier, a halt in the refilling of commercial LPG cylinders at the Indian Oil Corporation’s bottling plant at Chelari in Malappuram district was reported.
The disruption has been linked to supply constraints arising from the ongoing conflict involving the United States, Israel and Iran.
Because of the stoppage, commercial customers of Indane gas agencies across the Malabar region who rely on 19-kg and 5-kg cylinders are unlikely to receive fresh refills until further orders are issued.
However, distributors that still have commercial cylinders in their godowns are continuing to supply them to customers until their existing stocks are exhausted.
Industry members fear that once these remaining stocks run out, a large number of hotels and restaurants could be forced to suspend operations.
LPG prices hiked
Earlier, on Saturday, 7 March, the price of domestic cooking gas LPG was hiked by ₹60 per cylinder, amid the war between Iran and Israel in West Asia.
According to the IOC website, the price of a non-subsidized 14.2 kg LPG cylinder will cost ₹913.00 in Delhi, ₹938.50 in Chennai, ₹912 in Visakhapatnam, ₹965 in Hyderabad, ₹915 in Bengaluru, and ₹922 in Thiruvananthapuram.
The hike also applied to commercial 19kg LPG cylinders used by businesses. In Delhi, the price has increased from ₹1768.50 to ₹1883. In Mumbai, the price has risen from ₹1720.50 to ₹1835. Similarly, in Chennai it has increased from ₹1929 to ₹2043.50.
