LPG shortage hits Mumbai hotels as commercial supply face disruptions

Mumbai and parts of Maharashtra is facing a LPG gas shortage after commercial supply was reportedly disrupted amid Middle East crisis causing widespread disruption in the hospitality sectorAccording to the Mumbai hotel association AHAR about 20 per cent of hotels in the city were temporarily shut down due to a lack of commercial gas cylinders reports stated adding that the association warned that if the situation continues up to 50 per cent of the hotels could be forced to halt operations in the coming daysIndustry sources told the PTI that the shortage is already impacting Mumbai and Bengaluru with hotels and restaurants struggling to secure cooking gas Vijay Shetty president of AHAR warned that the shortage could soon paralyse the sector if supply issues persistIn a statement on X AHAR urged the Minister for Petroleum and Natural Gas to ensure transparent and adequate supply of commercial gas cylindersHotels and restaurants were struggling as commercial cylinders ndash a basic operational requirement ndash are increasingly difficult to obtain it saidThe statement said that illegal roadside vendors and small food stalls continue to operate using domestic LPG cylinders which are meant strictly for household use creating an uneven playing field for legitimate businessesMeanwhile the association members also met Chhagan Bhujbal the Maharashtra Minister for Food Civil Supplies and Consumer Protection with their concerns news reports said on TuesdayGasbased crematorium closed in PuneThe gasbased crematorium furnaces operated by the Pune Municipal Corporation PMC in Pune will be temporarily closed following directives from the Ministry of Petroleum and Natural GasThe decision comes as the ministry has prioritised propane and butane supplies for domestic LPG consumption due to a crisis in the Middle East according to the ANIAccording to a press release from the civic body the ministry under the Government of India directed on March 5 2026 that the available propane and butane across the country be primarily allocated for household LPG supplyOil ministry constitutes committee to review supplyThe Ministry of Petroleum and Natural Gas has formed a committee of three Executive Directors from Oil Marketing Companies OMCs to review representations for LPG supply to hotels restaurants and other industries the PTI reportedThe ministry stated that domestic LPG supply has been prioritised for households amid disruptions in international fuel supply caused by conflicts in the Middle East which have affected Indiarsquos imports including the closure of the Strait of Hormuz ndash the main route for LPG shipments from countries like Saudi ArabiaMeasures taken by governmentThe ministry has directed refineries to maximise LPG output by reducing petrochemical production and extended the LPG refill booking cycle from 21 to 25 days to prevent hoarding and black marketingNondomestic LPG supplies are now prioritised for essential sectors including hospitals educational institutions and certain civic services In Pune gasbased crematoriums temporarily closed following the governmentrsquos directive to prioritise propane and butane for domestic useOfficials continue to scout alternate LPG import sources but the hospitality and commercial sectors remain affected until supply stabiliseswith PTI and ANI inputs