‘We’ll have to shut down our business temporarily’: LPG shortage reaches UP’s hotels and restaurants

Rajendra Agarwal, who operates a restaurant in Varanasi, said their limited stock of commercial LPG cylinders will run out within a few days.

“We are hearing that fresh commercial cylinders are not being supplied,” he said. “If the situation continues, restaurant owners will be hit badly. Some of us may even have to temporarily shut down our business.”

Anoop Gupta, who runs a hotel in Agra, said his establishment is making do with the cylinders they have. “If supply is disrupted, it will become difficult for us to prepare meals and breakfast for guests staying at the hotel,” Gupta said.

The bulk of India’s LPG demand is met through imports, and over 80% of these volumes come via the critical chokepoint of the Strait of Hormuz, where vessel movements have effectively come to a halt due to the Iran-US-Israel tensions.

An LPG distributor in Lucknow said the main concern is the uncertainty surrounding refilling supplies. “The real problem will arise when the current stock is exhausted. We have not yet received any clear signals from the authorities about when the situation will be resolved, so refilling LPG cylinders could become a challenge,” the distributor said.

Some distributors also said the crisis may have been aggravated by large traders or businesses allegedly stocking up on cylinders in anticipation of a shortage.

D P Singh, former president of the Uttar Pradesh LPG Distributors Association, said the real concern is for commercial users. “At present, we are supplying cylinders from the limited stock available with us to our registered customers. However, the 19-kg commercial LPG cylinders are currently not being supplied to distributors, which could create difficulties for businesses that depend on them,” Singh said.

He added that priority supplies are being maintained for critical services. “Gas cylinders are continuing to be supplied to hospitals and other essential commercial establishments,” Singh said.

On Monday, the Ministry of Petroleum and Natural Gas said domestic LPG supply has been prioritised for households.

“In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use. The ministry has prioritised domestic LPG supply to households and introduced a 25-day inter-booking period to avoid hoarding/black marketing. Non-domestic supplies from imported LPG are being prioritised to essential non-domestic sectors such as hospitals and educational institutions,” it said in a post on X.

“For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs have been constituted to review the representations for LPG supply to restaurants/hotels/other industries,” it added.

Singh, meanwhile, said domestic consumers are unlikely to face an immediate crisis though they will now receive refills only after the revised 25-day booking cycle.

Are mid-day meals for students at government primary schools being affected? Schools The Indian Express spoke to said there is no crisis so far.

Shweta Mishra, principal of a primary school in Malihabad, which has 67 students, said, “At present, we still have LPG cylinders available. The mid-day meal was prepared and served to students today as usual.”