Mumbai Gas Crisis: 'Supply Cut Beyond 25% Could Be Catastrophic,' Says Hotel & Restaurant Association, Seeks 'Kind Intervention' Amid 20% Shutdown

Mumbai Gas Crisis: 'Supply Cut Beyond 25% Could Be Catastrophic,' Says Hotel & Restaurant Association, Seeks 'Kind Intervention' Amid 20% Shutdown

Indian Hotel & Restaurant Association (AHAR) warned that continued Piped Natural Gas (PNG) shortages could force hotels and restaurants in Mumbai to shut within two days. AHAR President Vijay K. Shetty said while the sector can handle up to a 25 per cent cut, any total stoppage would be catastrophic for businesses and workers.

Prathamesh KharadeUpdated: Tuesday, March 10, 2026, 12:31 PM IST
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Mumbai: The Indian Hotel & Restaurant Association (AHAR), representing over several establishments across the Mumbai Metropolitan Region, issued an urgent appeal to the Union Government over a looming energy crisis threatening the city’s hospitality sector. The appeal comes as 20 per cent of Mumbai's hotels remained shut today amid acute LPG shortage.

In a formal letter to the Ministry of Petroleum and Natural Gas, AHAR President Vijay K. Shetty expressed deep concern over potential curtailments of Piped Natural Gas (PNG). The association highlighted that while the industry could manage a minor reduction in supply, any total stoppage would be catastrophic, affecting both businesses and the millions of workers reliant on them.

AHAR's Appeal To Centre Amid Gas Crisis

AHAR's Appeal To Centre Amid Gas Crisis |

AHAR clarified that the sector could sustain a cut of up to 25 per cent in PNG supply, but any reduction beyond this threshold would be catastrophic, with devastating consequences. The association warned that a complete stoppage would make it “practically impossible” for hotels and restaurants to operate.

Urban commercial kitchens, which have increasingly shifted from traditional fuels to PNG for efficiency and safety, are particularly vulnerable. A total shutdown would not only silence the city’s kitchens but also threaten the livelihoods of the millions of workers forming the backbone of the service industry.

The association urged the government to ensure a minimum guaranteed supply of PNG to safeguard the economic stability of the sector. AHAR stressed that maintaining this baseline is crucial not only for business continuity but also for protecting thousands of cooks, servers and support staff whose incomes depend on daily operations.

20% Hotels Shut In Mumbai Due To Gas Crisis

The impact of fuel shortages is already evident. AHAR reported that around 20 per cent of hotels and restaurants in Mumbai have temporarily closed due to interruptions in commercial LPG supply.

The association further cautioned that, if the gas supply situation does not improve, up to half of the city’s hotels could be forced to shut within the next two days. The ability of restaurants to continue operating will largely depend on the existing gas stocks each establishment holds.

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