In a statement on X, AHAR on Tuesday urged the Minister for Petroleum and Natural Gas to ensure transparent and adequate supply of commercial gas cylinders
Representational Pic/File
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 sector
According 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 days.
Industry 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 persist.
In a statement on X, AHAR urged the Minister for Petroleum and Natural Gas to ensure transparent and adequate supply of commercial gas cylinders.
Hotels and restaurants were struggling as commercial cylinders – a basic operational requirement – are increasingly difficult to obtain, it said.
The 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 businesses.
Meanwhile, the association members also met Chhagan Bhujbal, the Maharashtra Minister for Food, Civil Supplies and Consumer Protection with their concerns, news reports said on Tuesday.
Gas-based crematorium closed in Pune
The gas-based crematorium furnaces operated by the Pune Municipal Corporation (PMC) in Pune will be temporarily closed following directives from the Ministry of Petroleum and Natural Gas.
The 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 ANI.
According 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 supply.
Oil ministry constitutes committee to review supply
The 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 reported.
The 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 India’s imports, including the closure of the Strait of Hormuz – the main route for LPG shipments from countries like Saudi Arabia.
Measures taken by government
The 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 marketing.
Non-domestic LPG supplies are now prioritised for essential sectors, including hospitals, educational institutions, and certain civic services. In Pune, gas-based crematoriums temporarily closed following the government’s directive to prioritise propane and butane for domestic use.
Officials continue to scout alternate LPG import sources, but the hospitality and commercial sectors remain affected until supply stabilises.
(with PTI and ANI inputs)
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