Bengaluru hotels warn of shutdown as LPG shortage bites amid West Asia conflict

Hotels and restaurants across Bengaluru may struggle to operate from Tuesday morning if commercial cooking gas supplies are not restored, the Bangalore Hotels Association said in a press release on Monday, citing severe disruption in LPG availability linked to the ongoing conflict in West Asia.

The association said supply of commercial LPG cylinders — the primary cooking fuel used by restaurants and hotels — has been affected, leaving many establishments unable to run their kitchens normally. With the hospitality sector heavily dependent on daily cylinder deliveries, the disruption has already begun affecting operations across the city.

Why are Bengaluru hotels warning of a shutdown?

In its statement, the association said nearly 70% of hotels in Bengaluru are already facing difficulties operating due to irregular or halted supply of commercial cooking gas.

The notice warned that if supply is not restored immediately, many establishments may not be able to serve food from around 7:30 am on Tuesday, effectively forcing them to halt operations until LPG deliveries resume.

Hotel owners said kitchens rely almost entirely on 19-kg commercial LPG cylinders, and even a brief disruption in deliveries can bring food preparation to a standstill.

How has the recent LPG price hike affected restaurants?

The supply disruption comes at a time when restaurants have already been hit by a rise in LPG prices.

Oil marketing companies recently increased the price of cooking gas across India, pushing up costs for both households and commercial users. The price of 19-kg commercial LPG cylinders used by hotels rose by about ₹114, while domestic LPG cylinders also became costlier earlier this month.

Following the revision, a commercial LPG cylinder costs well over ₹1,800 in major cities, raising operating expenses for restaurants, bakeries and small eateries.

Industry representatives say the hospitality sector was already under pressure after the withdrawal of earlier discounts offered on commercial LPG cylinders. Combined with the latest price hike, this has increased the cost of each cylinder by more than ₹250 in recent weeks, squeezing margins for many businesses.

What has the hotel industry asked the government to do?

The Bangalore Hotels Association has urged authorities and gas suppliers to immediately restore regular supply of commercial LPG cylinders.

Hotel owners warn that prolonged disruption could affect thousands of eateries across the city and disrupt food services for office-goers, students and daily commuters who depend on restaurants and small hotels for meals.