LPG Shortage News Today LIVE: Chennai Hotels Association and Bangalore Hotels Association claimed that commercial LPG supply to restaurants have taken a massive hit, therefore ‘the hotels will be closed' from today, 11 March
LPG Shortage News Today LIVE (March 11): Hotels and restaurants across major Indian cities – Bengaluru, Mumbai, Chennai, Jaipur- have been forced to shut their kitchens after commercial LPG supplies were abruptly suspended amid geopolitical disruptions to shipping through the Strait of Hormuz.
A geopolitical firestorm thousands of kilometres away is now hitting India’s hospitality sector where it hurts most — the kitchen.
Why India Faces an LPG Shortage?
Disruptions to shipping through the Strait of Hormuz, triggered by escalating conflict between Iran, Israel and the United States, have tightened India’s LPG supplies. The country imports roughly 62% of its 31.3 million tonnes of annual LPG consumption, much of it through that chokepoint. Iraq has slashed output at its southern oilfields by 70%, and Kuwait has declared force majeure.
Government Invokes ECA and ESMA
New Delhi has responded by invoking the Essential Commodities Act (ECA), prioritising household LPG over commercial users. Refineries are operating at full capacity, directed to channel increased production exclusively to domestic consumers. The booking interval has been extended from 21 to 25 days to curb hoarding.
The government on Tuesday also moved to ration natural gas supplies, prioritising households receiving piped gas, vehicles running on compressed natural gas (CNG).
The order establishes a four-tier priority system for gas allocation, with supplies to lower-priority sectors — including petrochemical plants, power stations, and oil refineries — curtailed to meet essential demand.
Hotels and Restaurants Bear the Brunt
The Bangalore Hotels Association issued a stark warning: “The supply of gas cylinders for commercial use has been stopped from today. Essential services like senior citizens, students, and hospitals rely on it. Immediate action is expected from Union Ministers to resume commercial gas supply.”
National Vice President of the LPG Association RK Gupta confirmed the suspension, adding: “The next booking will be allowed after a 25-day inter-booking period to avoid hoarding, and there is no shortage as claimed by oil companies.”
Relief Committee Formed in India, New Sources Sought
Union Petroleum Minister Hardeep Singh Puri has constituted a three-member committee of executive directors from IOC, HPCL and BPCL to address hospitality sector grievances. India is also in talks with Algeria, Australia, Canada and Norway for alternative LPG supply.
