Mumbai’s hospitality industry is facing a major crisis as a severe shortage of commercial LPG cylinders threatens the operations of hotels and restaurants across the city. Industry bodies have warned that up to 50% of restaurants and hotels in Mumbai could shut down within two days if cooking gas supplies are not restored quickly.
The shortage has intensified over the past week, with hotel associations reporting that supplies have almost completely stopped in several areas. Restaurants, cloud kitchens, caterers, and roadside eateries that rely heavily on LPG for cooking are finding it difficult to keep their kitchens operational.
Many Restaurants Already Shut or Reduced Services
The crisis has already forced many establishments to suspend operations or drastically reduce their menu offerings. According to industry estimates, around 20% of restaurants in Mumbai have already shut their kitchens due to the gas shortage.
Restaurants that still have limited gas supplies are trying to stretch their remaining stock by reducing cooking hours or removing certain dishes from the menu. Smaller eateries and street-food outlets are the most affected because they typically maintain minimal LPG reserves and depend on daily cylinder deliveries.
West Asia Conflict Behind Supply Disruption
The LPG shortage is linked to disruptions in global energy supply chains caused by the ongoing conflict in West Asia. The crisis has affected shipping routes through the Strait of Hormuz, a key passage for oil and gas shipments to India.
As imports slowed, the government reportedly prioritised LPG supply for households to ensure cooking gas availability for domestic users. While this measure helps protect household consumption, it has left the commercial hospitality sector facing severe shortages.
Industry Appeals for Urgent Government Support
Hospitality industry associations have appealed to the government to ensure uninterrupted LPG supply for the food service sector. They argue that restaurants and hotels serve millions of people daily, including office workers, travellers, and students, and any prolonged shutdown could disrupt urban food services.
The sector also supports a vast ecosystem that includes cloud kitchens, catering services, and food delivery platforms. If the shortage continues, it could threaten thousands of jobs and cause widespread economic disruption in the hospitality industry.
Uncertain Outlook for the Hospitality Sector
For now, restaurant owners are hoping that gas supplies will resume soon. However, if the supply chain disruptions persist, the hospitality industry in Mumbai and other major cities may face extended shutdowns, higher food prices, and operational challenges in the coming weeks.
