BENGALURU/CHENNAI – Restaurants and hotels across India warned of possible shutdowns as the Iran war disrupts cooking gas supplies. The crisis has pushed authorities to set up a panel to review industry requests.
The shortage stems from the U.S.-Israel conflict with Iran, which has halted ship traffic in the Gulf and Strait of Hormuz. This has increased global energy prices and transport costs, affecting exports and production from Gulf suppliers, including Qatar and Saudi Arabia.
India, the world’s second-largest importer of liquefied petroleum gas (LPG), invoked emergency powers last week to boost domestic production. Despite this, many restaurants report insufficient gas supplies. Bert Mueller, founder of the California Burrito chain, said, “We have LPG stock for two days. We are working on contingencies.” Some restaurants are installing induction stoves to manage operations.
The National Restaurant Association of India (NRAI), representing over 500,000 eateries, warned that disruptions in LPG supply could lead to “catastrophic closures.” Similarly, the Federation of Hotel & Restaurant Associations of India appealed for government assistance to secure fuel supplies.
LPG prices in India have risen for the first time in about a year, as import costs increase due to the Iran war. Qatar, India’s largest LNG supplier, recently halted production following Iranian strikes on Gulf countries in retaliation for U.S. and Israeli attacks.
In Bengaluru, restaurants report sharp declines in deliveries, raising concerns that kitchens may halt if supply issues persist. Manish V Shetty of the Udupi Food Hub said one outlet received no cylinders, and prices for cooking oil are also spiking. Veerendra Kamat, secretary of the Bengaluru Hotels Association, noted that few restaurants can stockpile gas safely, leaving them vulnerable to ongoing shortages.
Experts warn that unless global energy routes stabilize, the hospitality sector could face prolonged disruptions. The government panel aims to coordinate LPG distribution and prevent further impact on restaurants and hotels.
In other news read more about Iran War Drives Global Fuel Prices Higher Amid Shipping Disruptions
The Iran war continues to influence global energy markets, with ripple effects reaching India’s food and hospitality industries.
