LPG Shortage Hits Indian Restaurants as Middle East Conflict Disrupts Fuel Supply

CMB News | Energy & Food Industry | March 2026

India’s restaurant sector is facing mounting pressure as a shortage of commercial LPG cylinders spreads across major cities, forcing kitchens to reduce menus, limit operating hours, and search for alternative cooking methods.

The disruption comes amid rising energy prices and supply constraints linked to the ongoing conflict in the Middle East, which has affected global fuel markets and supply chains.

Across India, restaurants are scrambling to stretch existing gas supplies while waiting for clarity on when deliveries of commercial LPG cylinders will resume.

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Restaurants Begin Cutting Menu Items

Many restaurants have already started trimming their menus to conserve fuel.

Popular dishes requiring high heat or long cooking times are being removed temporarily, including:

• rava dosas
• parottas
• pizzas
• deep-fried dishes
• wok-based Asian meals.

In Coimbatore, the well-known Annapoorna Hotel has already removed rava onion dosas from its menu. In several cities, restaurants are serving fewer dishes during lunch hours to conserve LPG for dinner service.

Some establishments are even reducing operations to beverages only.

One restaurant in Bengaluru displayed a sign reading: “Only coffee and tea today.”

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Supply of LPG Cylinders Collapses

Restaurant owners report that LPG cylinder deliveries have dropped sharply in recent days.

Chef Tresa Francis, who runs the restaurant Coracle in Bengaluru, said suppliers informed her that no new LPG cylinders were currently available.

According to restaurant associations, supply restrictions have spread across several cities, including:

• Bengaluru
• Chennai
• Hyderabad
• Coimbatore.

The Bangalore Hotels Association warned that if supplies are not restored soon, many restaurants may be forced to shut down temporarily.

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LPG Prices Surge by 40%

Even before supplies dried up completely, restaurants were already paying sharply higher prices for LPG cylinders.

Industry representatives estimate that commercial LPG prices have risen by around 40% in the past two weeks.

Restaurants were initially able to purchase cylinders at double the normal price, but many suppliers have now run out of stock entirely.

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Restaurants Turn to Alternative Cooking Methods

With LPG supply restricted, many restaurants are experimenting with alternative cooking technologies.

These include:

• induction cooktops
• electric ovens
• charcoal stoves
• traditional wood-fired cooking.

However, many chefs say electric cooking cannot fully replace gas burners, especially for traditional Indian cuisine that requires strong flame control.

Santhosh Zachariah, owner of the Chennai restaurant MadCo, explained:

“Induction is not an alternative for much of the cooking we do. And electricity costs would rise dramatically.”

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Industry Faces Massive Economic Impact

The restaurant sector is one of India’s largest service industries.

According to the National Restaurant Association of India (NRAI), the sector represents an economic ecosystem worth roughly ₹6.6 trillion (about $80 billion).

Industry leaders warn that even a single day without LPG supply could cost the sector ₹1,200–1,300 crore ($140–160 million) in lost business.

Around 70–75% of restaurant kitchens across India rely on LPG as their primary energy source.

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Restaurants Focus on Fuel Conservation

To cope with the shortage, many restaurants are implementing strict fuel management strategies.

These include:

• operating fewer cooking stations
• turning off stoves when not in use
• prioritizing dishes that require less gas
• concentrating production on high-demand items such as biryani.

Some restaurants have also shortened opening hours, serving only dinner or weekend menus.

Others are adjusting menus daily depending on available fuel supplies.

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Price Increases Avoided – For Now

Despite rising costs, most restaurants are currently avoiding price increases for customers.

Vinay Gopal Manik Pradeep, manager of Mana Biryani Vindu in Visakhapatnam, said the restaurant would rather shut down temporarily than raise menu prices.

“We would rather close operations than pass these costs on to customers,” he said.

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Outlook

The LPG shortage highlights how energy supply disruptions can quickly ripple into the food service industry.

Restaurants across India are hoping that fuel deliveries resume soon, but the situation remains uncertain as global energy markets remain volatile.

If supplies are not restored within the next few days, operators warn that closures could spread across the sector — affecting everything from luxury restaurants to small roadside food stalls.