LPG shortage shuts Mumbai restaurants as 20% kitchens run out of cooking gas

From bustling Udupi joints to decades-old eateries famous for their butter chicken, several restaurants across Mumbai are shutting doors or cutting menus as a sudden shortage of commercial LPG cylinders leaves kitchens without fuel -- raising fears that half the city’s eateries could go dark within days.

A report by the Times of India says that a growing shortage of commercial LPG cylinders has begun to disrupt restaurant operations across Mumbai, forcing eateries to scale back service, shut temporarily or drastically reduce menu offerings as cooking gas supplies dry up.

Industry bodies estimate that nearly 20% of hotels and restaurants in the Mumbai region are already fully or partially shut due to the crisis. If the situation persists for another two days, as many as 50–60% establishments may be forced to close, they warn.


The shortage has been linked to disruptions triggered by the ongoing West Asia war, which has affected fuel supplies and prices.

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Kitchens go cold across the city

The impact is already visible in several popular eateries.

Hotel Free India at Jacob Circle, known for its kheema and butter chicken, has shut its doors. Nanumal Bhojraj’s Masjid Bunder outlet opened briefly on Tuesday morning but closed after running out of gas. Shaan Chinese, part of New Edward Restaurant on D N Road, remained shut the entire day, while Udupi Niketan in Bombay Central has cut down the number of dishes it serves and reduced service timings.

For customers, the first casualties have been dishes that require intense heat -- Chinese stir-fries and tawa-based recipes.

Restaurant staff say the shortage has left kitchens idle and operations uncertain.

Hidayatulla Ismail Dukka, manager at Free India restaurant, told ToI that the decision to shut was unavoidable.

“There has been no cylinder supply since Monday. Hence we decided to close from today.”

Menus shrink as costs surge

Some restaurants that still have limited gas reserves are trying to stretch supplies by cutting menu items and reducing service hours.

Akshay Shetty of Udupi Niketan said the restaurant had to restrict popular dishes to conserve fuel.

“The reason is the price of LPG cylinders have suddenly skyrocketed,” Shetty said.

Commercial LPG cylinders, which earlier cost around Rs 1,700, have recently increased to about Rs 1,840 following the Gulf crisis. But hoteliers allege the shortage has also led to black marketing, with cylinders reportedly being sold for around Rs 3,000 in the grey market.

So far, restaurants operating on piped natural gas (PNG) have not been affected.

An official from Mahanagar Gas Ltd said there has been no disruption in piped natural gas supply to commercial and industrial customers.

However, a large section of small and mid-sized eateries depend entirely on LPG cylinders for cooking, leaving them particularly vulnerable to supply disruptions.

Industry groups say the crisis has been exacerbated by a recent directive from the Union ministry of petroleum and natural gas, which prioritises LPG supply for domestic consumers amid rising demand.

An official from an oil marketing company said steps are being taken to ensure adequate household supply.

“Steps have been taken to enhance LPG production and prioritise its availability for domestic consumers. Along with domestic users, it has been decided to make supplies as per requirement to essential non-domestic sectors such as hospitals, educational institutions.”

The official added that other sectors will be reviewed before supply is restored.

“For LPG supply to other non-domestic sectors, a committee of three executive directors of oil marketing companies—Indian Oil, BPCL and HPCL—have been constituted to review the representations and prioritise LPG supply based on merit, necessity, and product availability.”

Confusion among suppliers

Restaurant associations say the directive has led to confusion among distributors, with many suspending supplies to food establishments altogether.

Pradeep Shetty, vice-president of the Federation of Hotel & Restaurant Associations of India, said the March 5 notification triggered uncertainty across the supply chain.

“Following the March 5 notification from the ministry, there has been considerable confusion among suppliers and distributors, many of whom have stopped supplying commercial LPG cylinders to hotels, restaurants and food service establishments.”

Shortages are now being reported not just in Mumbai but also in Pune, Aurangabad and Nagpur, while similar disruptions are emerging in Delhi, Karnataka, Telangana and Andhra Pradesh.

“If the situation does not improve in the next two days, nearly 50% of hotels and restaurants in Mumbai may be forced to temporarily shut operations,” Shetty said.

The Indian Hotels and Restaurant Association (AHAR), which represents nearly 8,000 small restaurants, permit rooms and hotels across Maharashtra, says the industry operates on thin margins and limited fuel reserves.

These establishments provide affordable meals to a large workforce, students and tourists, making them a crucial part of the urban economy.

40 lakh jobs; 1.6 crore employment at stake

According to AHAR, the sector supports around 40 lakh direct jobs and nearly 1.6 crore indirect or self-employment opportunities across Maharashtra.

The association has written to Union petroleum minister Hardeep Singh Puri urging intervention, saying restaurants can manage up to 25% curtailment in supply, but not a complete stoppage.

Restaurant representatives have also met Maharashtra food and civil supplies minister Chhagan Bhujbal, who assured them he would raise the issue with chief minister Devendra Fadnavis and other authorities.

For most restaurants, switching to alternative cooking systems is not a quick solution.

Owners say electric or induction-based cooking cannot easily replace LPG in commercial kitchens that require high-intensity flames typical of Indian cooking. Installing new systems would also involve significant costs and infrastructure changes.

For now, many restaurateurs are hoping for swift government intervention -- before more kitchens across the city fall silent.

(With inputs from ToI)