Anabelle Colaco
12 Mar 2026

BENGALURU/CHENNAI: Restaurants and hotels across India warned on March 10 that cooking operations could be disrupted or even halted as the Iran war squeezes supplies of liquefied petroleum gas (LPG), prompting authorities to form a panel to review the industry's requests for help.

The shortage comes as the U.S.-Israel war with Iran has disrupted shipping through the Gulf and the Strait of Hormuz, pushing up energy prices and transportation costs while affecting production and exports from Gulf suppliers such as Qatar and Saudi Arabia.

India, the world's second-largest importer of LPG, invoked emergency powers last week, requiring refiners to increase domestic production. The move has left many businesses in the hospitality sector struggling to secure enough cooking fuel.

"We have LPG stock for two days. We are working on contingencies," said Bert Mueller, founder of Mexican food chain California Burrito, which operates more than 100 outlets from Bengaluru and Chennai in southern India to Delhi and Noida in the north.

"We are conserving gas and installing induction stoves at certain stores."

India's oil ministry said it has established a panel to examine requests from restaurants and other industries seeking access to LPG supplies after appeals from two industry groups.

"The restaurant industry is predominantly dependent on commercial LPG for its operations," the National Restaurant Association of India (NRAI), which represents more than half a million restaurants, said in a letter to the food processing ministry on March 9.

"Any disruption therein will lead to a catastrophic closure," the NRAI said, while another group, the Federation of Hotel & Restaurant Associations of India, also asked the government for assistance.

Indian energy companies have raised LPG prices for the first time in roughly a year amid the war, driving up import costs. Imports normally account for about two-thirds of India's annual LPG consumption.

The crisis has been compounded by supply disruptions in the Gulf. Qatar, India's largest supplier of liquefied natural gas, halted production last week following Iranian strikes on the Middle East countries in retaliation for Israeli and U.S. attacks.

In Bengaluru, India's major technology hub, often referred to as Silicon Valley, restaurant owners said gas deliveries have dropped sharply, raising fears that kitchens may soon be forced to shut.

"One of our restaurants did not receive gas cylinders today," said Manish V Shetty, who runs the Udupi Food Hub chain of restaurants in the city.

"Thankfully, one of our older vendors helped us," he added, noting that the chain offers immediate payment rather than waiting a week or a month on credit. "We're also seeing a spike in the price of the sunflower oil that we use for cooking."

Restaurant operators say most kitchens do not keep large LPG reserves due to safety concerns and instead rely on frequent cylinder deliveries.

"It's a very grave situation. Most of the (gas) companies have stopped supplying," said Ananth Narayan of the NRAI's Bengaluru branch.

He added that even restaurants that keep backup cylinders may run out within one to two weeks if the supply disruption continues.

Veerendra Kamat, secretary of the Bengaluru Hotels Association, said the industry is closely watching the situation as businesses scramble to find alternative solutions while hoping the crisis eases quickly.