'Nobody explained why. After that there was panic buying, there was hoarding -- and then nothing reached us.'
The ongoing US-Israel war against Iran has slowed shipping through the Strait of Hormuz, through which India typically receives about 85 to 90 per cent of its LPG imports. India consumed 31.3 million tonnes of LPG in 2024-2025 but produced just 12.8 million tonnes domestically, importing the rest.
India's ministry of petroleum and natural gas invoked emergency powers on Monday, ordering all refineries to maximise LPG production from propane and butane streams exclusively for household cooking.
With 330 million active LPG connections at risk, domestic use now takes precedence over commercial sectors -- hotels, restaurants and eateries -- which are now reporting acute shortages.
The price of a 14.2-kg domestic cylinder jumped Rs 60 on March 7 -- the first hike since April 2025 -- pushing Delhi prices to Rs 913. Commercial 19-kg LPG saw a second weekly increase of Rs 115. The government has set up a three-member committee of oil marketing company executives to review LPG supply requests from the hospitality sector.
For P C Rao, president of the Bangalore Hotels Association, these measures remain distant assurances.
"We are hoping that at least within a few days some supply will resume. But right now the situation is very bad," Mr Rao tells Prasanna D Zore/Rediff.
What is the situation in Bengaluru right now?
No improvement from yesterday (March 9). We held a meeting (on March 10)-- myself, the Tamil Nadu Hotels Association, a director of Indian Oil, and their marketing manager -- and they told us plainly that there is no provision to supply anything at the moment. They said they would inform me tomorrow (March 11).
On one side they say that; on the other side the government is saying there is no major shortage. We are caught in between. We don't know what to do. We are, frankly, handicapped.
Did Indian Oil officials give you any assurance at all?
No confirmed assurance. Nothing. It was all 'we will see', 'we will try'. That is all we got from them.
Were hotels from other states also part of this meeting?
Yes, we had associations from Tamil Nadu, Chennai, Telangana and West Bengal. The situation in those places is the same -- two to three days of stock left, if not more. We all are in the same boat.
How many cylinders does the hotel industry in Bengaluru consume each day?
Approximately 22,000 to 25,000 cylinders per day. I must say that is not an exact figure -- it may vary -- but that is the rough estimate (According to Virendra Kamat, the secretary of the Bangalore Hotels Association this figure is a huge 100,000 cylinders per day assuming 3 cylinders are consumed every day on an average by over 30,000 hotels in just Bengaluru).
When did this problem actually start?
From Sunday (March 8). And what is frustrating is that just on Friday the petroleum minister (Hardeep Singh Puri) tweeted that India has 60 to 70 days of LPG stock. I have the screenshot. There was even a breakdown: India has 50 days, China has 200 days, Japan has 250 days. We are nowhere near them.
Then suddenly on Sunday, supply stopped. Nobody explained why. After that there was panic buying, there was hoarding -- and then nothing reached us.
How many hotels have already shut down in Bengaluru?
Two or three have already closed completely. Today a few more called me to say they will not open tomorrow. Every day it is growing. The smaller hotels are the worst hit -- they do not have the capital to keep a large stock. Most of them keep one week's supply at most. They have already exhausted that.
What are hotels still operating doing to manage?
We are reducing the menu. Gas-heavy items -- Chinese dishes and the like -- are being taken off. We are cooking only what is necessary. Some hotels are switching to induction cookers for smaller things like coffee and tea. That is all we can do for now.
We have also suggested shifting hours -- closing earlier, opening once instead of twice. But these are stopgap measures. They do not solve the problem.
What happens if there is no improvement in the next day or two?
If supply does not return, food and refreshments will simply not be available at hotels. We have no intention of shutting down -- but without gas it is impossible to cook.
We are hoping that at least within a few days some supply will resume. But right now the situation is very bad.
What is the impact on business?
It is serious. People who depend on hotels for their daily meals -- students, working people, medical professionals near hospitals -- they are all affected. Our losses are mounting. And the smaller establishments especially cannot absorb this for too long.
If this goes on another week, many of them will have no choice but to close.
Have you taken this up with government or political representatives?
We have written to Union ministers. We have raised the issue through members of Parliament from Bengaluru. We are trying every channel. But the response so far has been the same everywhere: 'We will see'.
Bengaluru's restaurant industry is staring down a crisis. Commercial LPG cylinders -- the lifeline of roughly 30,000 hotels and eateries across the city -- have simply stopped arriving. No supply, no warning, no clear explanation from the oil companies.
"We don't know what to do. There is no clear plan because the problem itself has no clear solution in sight," Virendra Kamat, secretary, Bangalore Hotels Association, tells Prasanna D Zore/Rediff.
What is the situation in Bengaluru right now? What problems are hotels facing?
There is no supply of commercial LPG cylinders. None whatsoever. As things stand, 30 per cent of restaurants will not open tomorrow. And if this continues, another 30 per cent will have to shut down.
Since when has this been going on, and is it purely a supply problem?
Yes, it is entirely a supply problem. Commercial LPG cylinders have simply stopped coming. There is no partial shortage -- there is no supply at all.
Have you spoken to anyone from Indian Oil, Bharat Petroleum, or Hindustan Petroleum?
We have. But they are not able to explain what the situation is or when it will improve. They are as much in the dark as we are.
How are hotels that are still open managing? And what happens to businesses and their staff?
Without cylinders it is not possible to open, full stop. Every establishment that closes affects not just the owner and the staff inside, but the entire supply chain connected to it.
Think about what Bengaluru city consumes every single day -- around 30 lakh (3 million) litres of milk, the same quantity of vegetables, fruits, eggs, and meat.
The moment restaurants shut, that entire chain stops moving. The people who grow the food, transport it, supply it -- all of them get hit.
What alternatives has the government suggested?
The central government's notification makes it clear that priority is now being given to domestic cylinders over commercial ones. So the oil companies are telling us to find alternate means of cooking -- firewood, electric burners, that sort of thing. But switching to any of these requires fresh capital investment.
You cannot simply swap one for the other overnight. This is not a solution; it is passing the problem back to us.
How many cylinders does Bengaluru's hotel industry need every day?
Bengaluru city alone needs around 1 lakh cylinders per day. There are roughly 30,000 hotels and restaurants in the city, and each one needs at least two to three cylinders a day on average. That figure is daily consumption -- there is no stock sitting in reserve.
Have you approached elected representatives? Who have you spoken to?
We have escalated this to seven or eight members of Parliament from Karnataka -- from all parties, Congress, BJP, and others. They have said they will take it up with the Union petroleum minister (Hardeep Singh Puri) and see what can be done. We are waiting.
Are you hopeful the situation will improve soon?
We are hoping for the best. That is all we can do right now.
And if nothing changes in the next week?
Then most of the remaining restaurants will shut down. We will have no choice but to go for alternate cooking methods -- firewood, electric burners, whatever is available. But honestly, we don't know what to do.
There is no clear plan, because the problem itself has no clear solution in sight.