LPG Shortage in Mumbai Forces 20% of Restaurants to Shut; Industry Warns of Wider Closures
A growing LPG shortage in Mumbai has forced nearly 20% of the city’s restaurants and hotels to shut operations, triggering concerns of a deeper crisis in the hospitality sector. Industry associations warn that if supplies do not improve soon, nearly half of Mumbai’s eateries could temporarily close within the next few days.
The disruption in commercial gas supply has been linked to global supply chain pressures caused by the ongoing geopolitical tensions in West Asia. The situation has begun affecting the daily operations of restaurants across Maharashtra, with businesses resorting to menu rationing, slower cooking methods, and in some cases purchasing cylinders at significantly higher prices.
Hospitality industry representatives say the LPG shortage in Mumbai has already started affecting smaller establishments the most, many of which rely heavily on uninterrupted cylinder supply to run their kitchens.
Restaurants Struggle as LPG Supply Disruptions Deepen
According to industry bodies, the LPG shortage in Mumbai has left restaurant owners scrambling to maintain basic operations. Many eateries have reported that commercial gas deliveries have been delayed or halted entirely over the past few days.
A representative of the Indian Hotel and Restaurant Association (AHAR), which represents hospitality businesses in the state, said the sector is facing an unprecedented challenge.
“About 20% of hotels and restaurants in Mumbai have already shut down due to the LPG shortage in Mumbai. If the situation continues for another day or two, the number could increase to nearly 50%,” the representative said.
Industry leaders have urged authorities to consider allowing at least partial supply of commercial LPG so that restaurants can continue functioning. They argue that a complete halt in supply threatens the survival of thousands of small and medium-sized food businesses.
The issue has also been raised with the Maharashtra government. State Food and Civil Supplies Minister Chhagan Bhujbal said the government understands the concerns of the hospitality sector but prioritising domestic cooking gas supply remains critical.
Officials indicated that maintaining commercial supply at even 25% capacity may be difficult because authorities want to ensure uninterrupted gas availability for households.
Rising Costs and Black Market Purchases
The LPG shortage in Mumbai has also triggered sharp price increases in the informal market. Some restaurant owners say they are paying significantly higher prices just to keep their kitchens operational.
Amar Jinwal, operations head at Mumbai-based fine-dining restaurant East Asia, said his restaurant has been facing gas supply issues for several days.
“To continue running our restaurant, we are paying nearly 30% more than usual for LPG cylinders,” he said. “The shortage has forced us to explore other options, but right now we are trying to manage with whatever supply we can arrange.”
Another restaurant chain owner, who operates multiple outlets in the city, said even the black market is running short of cylinders due to the ongoing LPG shortage in Mumbai.
“Procuring LPG has become extremely difficult. Even unofficial suppliers are charging very high prices, and availability is limited,” the owner said.
Industry experts warn that such price spikes could eventually lead to higher food prices if the supply situation continues.
Industry Seeks Urgent Government Intervention
The LPG shortage in Mumbai has prompted several hospitality associations to seek urgent intervention from the central government. The Federation of Hotel and Restaurant Associations of India (FHRAI) and the Hotel and Restaurant Association of Western India (HRAWI) have both expressed concern over the scale of disruption.
Pradeep Shetty, Vice-President of FHRAI and spokesperson for HRAWI, said the shortage is being reported not only in Mumbai but also in cities such as Pune, Aurangabad and Nagpur. Similar supply challenges have also emerged in several other states.
“If the situation does not improve soon, we could see a temporary shutdown of up to 50% of restaurants in Mumbai depending on the stock of cylinders they currently hold,” Shetty said.
Industry bodies have also warned that the impact of the LPG shortage in Mumbai could extend beyond restaurants. The hospitality sector supports millions of jobs across the country, including both direct and indirect employment.
According to estimates shared by associations, disruptions in gas supply could affect around 40 lakh direct jobs and nearly 60 lakh indirect livelihoods connected to the food service industry.
While some restaurants are considering shifting to electric or induction cooking systems, industry leaders say the transition is neither simple nor affordable. Commercial kitchens that prepare Indian cuisine often require high-intensity flames and large cooking setups, making electric alternatives less practical.
For now, restaurant owners across the city are hoping that authorities restore normal supply soon. Without a quick resolution, the ongoing LPG shortage in Mumbai could lead to broader closures, affecting businesses, workers, and diners alike.
