Commercial LPG shortage hits major cities; Karnataka CM writes to Union Minister Hardeep Puri

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Hospitality associations in cities including Mumbai, Pune, Hyderabad, Chennai and Kolkata have also flagged difficulties in procuring commercial LPG cylinders, raising concerns that restaurants and catering units could face operational disruptions if supplies do not normalise soon.
Commercial LPG shortage hits major cities; Karnataka CM writes to Union Minister Hardeep Puri
Beyond restaurants and hotels, the shortage could affect hostels, wedding halls, event venues and community kitchens that rely on commercial LPG for large scale cooking. Credits: Getty Images

A shortage of commercial liquefied petroleum gas (LPG) cylinders is disrupting the hospitality sector across several Indian cities, prompting calls for urgent intervention from the Centre to stabilise supplies.

The issue gained political attention on Monday after Karnataka chief minister Siddaramaiah wrote to Union Petroleum Minister Hardeep Singh Puri seeking immediate action to address supply disruptions affecting hotels and restaurants in Bengaluru.

Hospitality associations in cities including Mumbai, Pune, Hyderabad, Chennai and Kolkata have also flagged difficulties in procuring commercial LPG cylinders, raising concerns that restaurants and catering units could face operational disruptions if supplies do not normalise soon.

What triggered the commercial LPG shortage?

According to Siddaramaiah’s letter dated March 10, the shortage appears to have been triggered by a recent directive issued by the ministry of petroleum and natural gas prioritising LPG production and supply for domestic consumers.

The move was intended to ensure uninterrupted cooking gas availability for households. However, its implementation appears to have inadvertently reduced the availability of commercial LPG cylinders used by hotels, restaurants, hostels and catering establishments.

Industry bodies say the situation has created supply bottlenecks in several urban markets where food service businesses rely heavily on commercial LPG.

How much supply disruption is Bengaluru facing?

In his letter, the chief minister said Karnataka’s commercial LPG demand has traditionally been met through supplies from three oil marketing companies — Indian Oil Corporation, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited.

Daily supplies typically include around 500–550 metric tonnes from Indian Oil, about 300 metric tonnes from Hindustan Petroleum and roughly 230 metric tonnes from Bharat Petroleum.

The sudden disruption in these supplies has severely affected hotels, catering establishments, mess facilities and other commercial users in Bengaluru.

Who else could be affected by the shortage?

Beyond restaurants and hotels, the shortage could affect hostels, wedding halls, event venues and community kitchens that rely on commercial LPG for large-scale cooking.

Students, migrant workers and professionals living away from home may also face inconvenience as many depend on restaurants and mess facilities for daily meals.

What action has been sought from the Centre?

Siddaramaiah urged the Union petroleum ministry to issue directions to oil marketing companies to restore adequate commercial LPG supplies to the city.

“A timely resolution will help ensure that businesses continue to operate smoothly while avoiding inconvenience to thousands of citizens who rely on these services daily,” the chief minister said in the letter.

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