India Restaurants Warn of Possible Shutdowns Due to Gas Supply Disruptions

Indian Restaurants and Hotels Brace for Another Crisis Amid Iran War

As the US-Israel war on Iran tightens its grip with ship traffic halting in the Gulf and the Strait of Hormuz, the situation has exacerbated an ongoing crisis for India’s hospitality industry. The shortage of cooking gas—especially liquefied petroleum gas (LPG)—has sent shockwaves through eateries and hotels across the country.

Last week, Indian authorities invoked emergency powers to mandate refiners to boost domestic LPG production in response to skyrocketing prices caused by disruptions in global supply chains. While India’s oil ministry has set up a review panel to address industry requests for additional supplies, restaurants face imminent risks.

“We are running out of stock,” Bert Mueller, founder of California Burrito chain spanning across major Indian cities like Bengaluru and Delhi, reported. “We have LPG for only two days left.” Mueller explained that the company is now urgently installing induction stoves in select stores to conserve remaining gas. He added, “We need to work on contingency plans.”

Industry bodies are already sounding alarms. The National Restaurant Association of India (NRAI), representing over half a million restaurants, warned about impending catastrophic closures if issues aren’t resolved soon. Another body, the Federation of Hotel & Restaurant Associations of India, has also appealed for government intervention.

The hospitality sector’s dependency on LPG is clear—more than two-thirds of annual consumption relies on these imported fuels. This reliance was further compounded by Qatar’s suspension of natural gas (LNG) shipments last week after Iranian strikes hit Gulf countries.

In Bengaluru, known as India’s Silicon Valley, several restaurants reported sharp drops in deliveries and faced the risk of shutting down their kitchens entirely. Manish V Shetty, owner of Udupi Food Hub chain, commented: “One of our restaurants did not receive gas cylinders today.” He noted that reliance on older vendors who accept immediate payment prevented severe disruption but highlighted that even with these alternatives, supply issues loom.

“We’re also seeing a spike in the price of sunflower oil, which we use for cooking,” Shetty observed. Despite few storage options due to safety concerns and reliance on frequent replacement, many restaurants are already preparing for shortages within weeks if the situation doesn’t improve.

For Indian consumers, this crisis serves as yet another reminder that global geopolitical tensions can significantly impact everyday life, from food security to economic stability. As India’s largest supplier of LNG Qatar halted production last week in response to Iranian strikes against Gulf countries, the potential ripple effects continue to grow darker.