LPG Shortage Crisis in India: Hotels and Restaurants Struggle Amid Global Supply Disruptions The ongoing conflict in West Asia has triggered a severe shortage of commercial LPG cylinders, causing significant challenges for hotels and restaurants across India. On March 11, 2026, many establishments reported difficulties in obtaining supplies as oil marketing companies rationed gas amid disrupted supply chains. The government has prioritized domestic cooking gas for households, leaving commercial users like restaurants and hotels facing a critical shortage. State hotel associations have urged governments to ensure uninterrupted supply of LPG cylinders, citing the impact on the hospitality sector. The crisis has been exacerbated by the war between Iran and the U.S.-Israel alliance, which has disrupted global fuel supplies, including India’s LPG imports. To address the issue, the government formed a three-member committee to tackle grievances and prioritize domestic LPG distribution. Reliance Industries announced plans to boost cooking gas production at its Jamnagar refinery and divert gas from the Bay of Bengal KG-D6 fields to the priority sector. This move aims to mitigate the effects of the West Asia conflict on India’s energy infrastructure. Meanwhile, panic buying of LPG cylinders occurred in Lakhimpur Kheri, Uttar Pradesh, as rumors of supply disruptions spread. Despite assurances from officials that supplies remain adequate, customers rushed to distribution centers to secure cylinders. In Mumbai, the shortage has forced 20% of eateries to shut down, with fears of further closures as tensions with Iran and Israel escalate. The situation has also affected Goa’s tourism industry, where restaurants face closure threats.#iran #mumbai #us_israel_alliance #west_asia #lakhimpur_kheri
