LPG Supply Crisis Puts India’s Restaurant Industry on Edge; Thousands May Shut Within 72 Hours

New Delhi | 12 March 2026 India’s restaurant industry is facing a serious challenge as a severe shortage of commercial LPG cylinders threatens the operations of thousands of eateries across the country. As of March 12, 2026, industry representatives warn that if the supply situation does not improve soon, a large number of restaurants may be forced to temporarily shut down. The National Restaurant Association of India (NRAI) has cautioned that nearly half of the country’s restaurants could be affected by the crisis within the next few days. According to the industry body, the shortage has been triggered by disruptions in supply chains from West Asia. India depends heavily on LPG imports, with nearly 90 percent of the supply coming from countries such as Saudi Arabia and Qatar. Ongoing tensions in the region have slowed shipments, creating a gap between demand and availability. As a result, restaurants in major cities including Delhi, Mumbai, Bengaluru, and Chennai are struggling to maintain normal kitchen operations. In response to the shortage, several restaurants have started making operational adjustments. Some establishments have begun using electric induction cookers as an alternative to LPG, while others are reducing their menus to manage limited fuel supplies. In many places, dishes that require long cooking times are being temporarily removed from menus. The NRAI has described the situation as extremely worrying and warned that if supplies do not stabilise quickly, the industry could face a "catastrophic closure". The crisis is also being felt in the financial markets. Shares of major food delivery platforms such as Zomato and Swiggy reportedly declined by around four percent on March 12 due to fears that restaurant closures could affect orders. Meanwhile, the Ministry of Petroleum and Natural Gas has directed refineries to increase production and prioritise domestic LPG supply. Officials have also introduced a 25-day gap between cylinder bookings to help manage the shortage. Despite these measures, many restaurants are currently operating on limited stocks, and the coming days will be crucial for the industry. LPG Supply Crisis Puts India’s Restaurant Industry on Edge; Thousands May Shut Within 72 Hours India’s restaurant industry is facing a serious challenge as a severe shortage of commercial LPG cylinders threatens the operations of thousands of eateries across the country. As of March 12, 2026, industry representatives warn that if the supply situation does not improve soon, a large number of restaurants may be forced to temporarily shut down. The National Restaurant Association of India (NRAI) has cautioned that nearly half of the country’s restaurants could be affected by the crisis within the next few days. According to the industry body, the shortage has been triggered by disruptions in supply chains from West Asia. India depends heavily on LPG imports, with nearly 90 percent of the supply coming from countries such as Saudi Arabia and Qatar. Ongoing tensions in the region have slowed shipments, creating a gap between demand and availability. As a result, restaurants in major cities including Delhi, Mumbai, Bengaluru, and Chennai are struggling to maintain normal kitchen operations. In response to the shortage, several restaurants have started making operational adjustments. Some establishments have begun using electric induction cookers as an alternative to LPG, while others are reducing their menus to manage limited fuel supplies. In many places, dishes that require long cooking times are being temporarily removed from menus. The NRAI has described the situation as extremely worrying and warned that if supplies do not stabilise quickly, the industry could face a "catastrophic closure". The crisis is also being felt in the financial markets. Shares of major food delivery platforms such as Zomato and Swiggy reportedly declined by around four percent on March 12 due to fears that restaurant closures could affect orders. Meanwhile, the Ministry of Petroleum and Natural Gas has directed refineries to increase production and prioritise domestic LPG supply. Officials have also introduced a 25-day gap between cylinder bookings to help manage the shortage. Despite these measures, many restaurants are currently operating on limited stocks, and the coming days will be crucial for the industry.