India's LPG Supply Crisis Deepens as Bengaluru Hospitality Sector Reports 30% Business Decline
Amid growing concerns over liquefied petroleum gas (LPG) availability across India, the hospitality industry in Bengaluru has reported significant business losses, with hotels and restaurants experiencing approximately 30% decline in revenue due to limited commercial LPG supply. The crisis emerges against a backdrop of global geopolitical tensions affecting petroleum supply chains, though government officials maintain that distribution arrangements remain functional nationwide.
Government Implements Strict Measures to Manage Domestic LPG Distribution
The Indian government has taken decisive action to address mounting pressure on domestic LPG supplies. On Saturday, authorities issued a gazette notification under the Essential Commodities Act, amending the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order to prohibit consumers with piped natural gas (PNG) connections from obtaining domestic LPG refills from public sector oil companies.
"The supply of domestic LPG cylinder refills to consumers already owning PNG connections has been declared a prohibited activity," stated government directives issued to oil marketing companies. While exact numbers remain unspecified, officials indicated that a significant number of households maintain both PNG and LPG connections, contributing to increased demand pressure.
Bengaluru's Food Service Industry Forced to Adapt Amid Supply Constraints
The commercial LPG shortage has particularly impacted Bengaluru's vibrant food and beverage sector, with industry representatives estimating losses between 25-30%. Many establishments have implemented drastic measures to conserve limited gas supplies:
- Reducing menu offerings and eliminating deep-fried items like kebabs and snacks
- Shortening operating hours to minimize cooking time
- Exploring alternative cooking methods, including firewood for larger establishments
- Focusing on dishes requiring less cooking time or reheating
Smaller eateries face additional challenges, as limited space and infrastructure make switching to firewood impractical. The Bengaluru Hotels' Association confirmed that reduced customer footfall has compounded difficulties, with popular dishes temporarily removed from menus to preserve gas supplies.
Government Campaign Shows Results in Reducing Panic Bookings
The petroleum ministry's campaign to discourage panic LPG bookings appears to be yielding positive results. Domestic refill bookings declined from 88.8 lakh on Friday to 77 lakh on Saturday, representing a significant reduction in demand pressure. Online bookings increased from 84% to 87%, indicating improved digital adoption among consumers.
"No dry-outs were reported at LPG distributors despite earlier system crashes caused by unusually high booking volumes," confirmed ministry officials. The government continues to urge citizens to avoid hoarding cylinders and consider switching to PNG where available infrastructure exists.
Safety Confirmed for Indian Oil Tanker Amid Global Tensions
In related developments, the petroleum ministry confirmed that the Indian-flagged vessel Jag Laadki sailed safely from Fujairah Single Point Mooring after the Fujairah oil terminal was attacked during crude oil loading operations. The tanker departed at 10:30 AM IST on Sunday carrying approximately 80,800 metric tonnes of Murban crude oil destined for India, with all Indian crew members reported safe.
This incident occurred amid broader concerns about petroleum product availability following geopolitical tensions in West Asia that have disrupted global supply chains. Government authorities maintain that arrangements are in place to ensure continued availability of cooking gas and petroleum products across the country.
Delhi Maintains Stable Supply with Enhanced Monitoring
In the national capital, Delhi Food Supplies Minister Manjinder Singh Sirsa reassured residents that cooking gas supplies remain stable despite global disruptions. The Delhi government has deployed 70 enforcement teams from multiple departments to monitor markets, check stocks, prevent hoarding, and ensure regulated distribution of commercial LPG cylinders to essential sectors.
These teams are specifically tasked with maintaining priority for domestic consumers while ensuring fair distribution practices. The enhanced monitoring comes as paying guest accommodations, hostels, and apartment complexes across affected regions have begun issuing advisories warning residents about potential meal simplifications or possible food service disruptions.
The government's multi-pronged approach—combining supply chain management, consumption restrictions, and market monitoring—aims to stabilize LPG distribution while addressing both domestic and commercial sector needs during this period of heightened demand and global supply uncertainty.
