Mumbai’s hotel industry is facing a severe disruption as the ongoing LPG cylinder shortage forces operations to grind to a halt. According to the Mumbai Hotels and Restaurants Association (AHRA), around 20% of hotels in the city have already closed temporarily due to the unavailability of cooking gas.

The association warned that nearly 50% may have to shut down soon if the supply situation does not improve, India Today reported.

According to AHAR, the continued operation of restaurants will depend on the LPG stock each establishment currently has on hand.

“If the situation continues like this, nearly half of Mumbai’s hotels could shut down in the coming days," the association said.

However, AHAR clarified that the association has not made any collective decision to shut hotels. Whether restaurants remain open or temporarily close will be determined by each hotel owner based on the gas supply available at their establishment.

The shortage coincides with global energy markets already strained by the ongoing West Asia conflict, which has disrupted fuel shipments and heightened concerns over supply chains.

In the past two days, commercial LPG shortages have started impacting restaurants in multiple cities, including Mumbai. Restaurant associations have warned that if the supply issues continue, thousands of eateries could be affected.

Oil Ministry Forms Committee

Meanwhile, the oil ministry has formed a committee to investigate LPG supply disruptions, following a sudden shortage of commercial cylinders that has alarmed the hospitality sector.

In a post on X, the ministry said a committee comprising three executive directors of oil marketing companies (OMCs) has been formed to review requests for LPG supplies to restaurants, hotels and other industries.

The ministry, while assuring that the country has sufficient fuel stocks, has instructed refineries to boost LPG production by redirecting petrochemical streams. It has also extended the LPG refill booking cycle from 21 days to 25 days.

Source: News18