LPG Shortage Forces 20% Of Mumbai Hotels, Restaurants To Close, 50% May Shut Soon: Association

Last Updated:March 10, 2026, 10:46 IST

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

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.

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“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.

Also Read Schools Shut, Fuel Prices Spiked: How India’s Neighbours Are Battling Energy Crisis Amid Iran War

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.

“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 said.

“The ministry has prioritised domestic LPG supply to households and introduced a 25-day inter-booking period to avoid hoarding and black marketing."

It further added that imported LPG intended for non-domestic use is being prioritised for essential sectors, including hospitals and educational institutions.

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