A crisis in the making
A severe commercial liquefied petroleum gas (LPG) shortage in India, driven by supply chain disruptions stemming from geopolitical tensions in West Asia, has been crippling the hospitality sector since early 2026. Government supply chains prioritised domestic household connections, leaving commercial users like hotels and restaurants with acute shortages. The US-Iran conflict caused severe LPG shortages in India by disrupting shipping through the Strait of Hormuz, affecting 90 per cent of its imports. As of early April 2026, the conflict resulted in over 800 fuel cargo ships becoming stranded in the region, disrupting global and Indian supplies. The government of India has prioritised LPG supplies for domestic households, hospitals and critical institutions, while commercial supplies were curtailed to mitigate the cooking gas crisis in the country. And irrespective of the outcome of fragile US-Iran ceasefire negotiations and the diplomatic peace talks, experts believe that the LPG shortage in India could last for a few more months.
Hotels and restaurants in India are tackling a critical commercial LPG shortage by adopting menu rationalisation, switching to induction cooktops or electric ovens and, in some cases, reverting to firewood. “Most restaurant kitchens have traditionally depended on LPG for cooking,” says Arjun Baljee, president, Royal Orchid Hotels. “In response to the uncertainty about the LPG supply, we have now diversified our cooking infrastructure. We have introduced induction ranges, infrared burners, electric combi-ovens and other energy-efficient alternatives. At the same time, chefs are revisiting menus and cooking processes to optimise energy usage, without compromising on the quality of the dishes being served. We have incorporated techniques such as batch cooking, sous vide and partial pre-preparation to reduce the dependence on LPG cooking.” Baljee informs that another shift is a renewed interest and incorporation of traditional cooking methods, such as charcoal, wood-fired ovens and slow-cooking techniques. These would reduce LPG dependence, while adding unique flavour profiles. “Additionally, we are coordinating with multiple distributors to secure an alternate supply of LPG to make sure that the guest experience is not compromised,” he adds. “All these efforts have ensured operational stability and enabled our hotels to maintain services”.
Many hotels in India have been proactively managing the LPG situation through a combination of advanced procurement, diversified vendor relationships and tighter operational controls for the past few months. “While there have been intermittent supply-side pressures in certain regions, our teams have ensured continuity of service without any disruption to the guest experience,” says Viraj Oberoi, director, Elgin Hotels & Resorts.
Better energy management
Also, many hotels in India have implemented piped natural gas lines for better energy management systems and optimised kitchen operations. “The rise in LPG prices has definitely had an impact on the hospitality industry, and we are not immune to it,” contends Pooja Ray, managing director, Mayfair Hotels & Resorts. “However, instead of reacting drastically, we have tried to manage the situation through efficiency and planning. We have become more mindful about menu planning and kitchen operations.”
About 60 per cent of India’s LPG consumption is sourced from foreign countries and, until recently, over 90 per cent of these fuel supplies passed through the Strait of Hormuz, making it a critical chokepoint. Moreover, India’s limited storage capacity is also a major cause of concern. The country’s limited storage capacity covers barely 15 days of LPG consumption against an annual demand of about 35 million tonnes. The daily requirement of India stands at about 80,000 tonnes, with imports bridging the gap.
Experts believe that the restoration of India’s disrupted LPG supply chains may take a few more months, as uncertainty continues over whether production facilities in the West Asian region have suffered permanent damage or temporary halts. The timeline for a swift return to 100 per cent normalcy is increasingly bleak. The LPG crisis in India stems from the blockade of the Strait of Hormuz and also Iranian retaliatory air strikes on regional energy infrastructure, which have severely choked the flow of cooking gas to South Asian countries. The primary concern currently in the international fuel market is the ambiguity surrounding the exact status of key production wells and processing units situated in the Gulf region. Although the government maintains that India’s LPG ecosystem is more robust today than ever before, both in terms of supply diversification and domestic production capacity, hotels, restaurants and cafes in India continue to run their kitchens smartly and efficiently, inputs from global suppliers and many reports suggest a prolonged period of cooking gas supply in India and a delayed recovery period of LPG crisis.