US-Israel-Iran Conflict Fallout: Centre Orders LPG Priority For Homes, Supply To Hotels Curtailed

US-Israel-Iran Conflict Fallout: Centre Orders LPG Priority For Homes, Supply To Hotels Curtailed

Commercial LPG supplies to hotels in Maharashtra have been curtailed as the Centre prioritises household gas amid global fuel disruptions caused by the West Asia conflict. Hotel bodies warn nearly half of Mumbai’s restaurants may shut if shortages continue. Authorities have ordered action against LPG hoarding, while the government says domestic supply remains the top priority.

S Balakrishnan Sweety BhagwatUpdated: Wednesday, March 11, 2026, 11:14 AM IST
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US-Israel-Iran Conflict Fallout: Centre Orders LPG Priority For Homes, Supply To Hotels Curtailed | File Pic

Mumbai: Maharashtra Food and Civil Supplies Minister Chhagan Bhujbal on Tuesday said gas supply to hotels was being curtailed by oil marketing companies (OMCs), which have been instructed by the Union government to prioritise domestic consumers amid the ongoing conflict in West Asia that has disrupted global fuel supply chains.

In a video message, Bhujbal said several hotel owners had met him to raise concerns about the growing shortage of commercial liquefied petroleum gas (LPG). According to him, the Centre has directed oil companies to ensure uninterrupted supply to household consumers first. “I personally met Chief Minister Devendra Fadnavis and discussed the situation. There are clear instructions from the Central government to all oil companies to prioritise domestic gas,” Bhujbal said.

Meanwhile, Maharashtra Revenue Minister Chandrashekhar Bawankule warned that strict action would be taken against those hoarding LPG cylinders and said district collectors had been directed to act against such practices. “The government's priority is to ensure uninterrupted supply of domestic gas. In a crisis-like situation, commercial supplies are bound to be affected, but we will ensure the disruption does not last long,” Bawankule said.

The hospitality sector has also written to the Ministry of Petroleum and Natural Gas and the state civil supplies department seeking urgent intervention to restore commercial LPG supplies. Pradeep Shetty, vice president of the Federation of Hotel and Restaurant Associations of India (FHRAI) and spokesperson for the Hotel and Restaurant Association Western India, said, “The shortage of commercial LPG has become extremely serious over the past week. We are receiving reports of severe shortages from cities including Mumbai, Pune, Aurangabad and Nagpur.

If the situation does not improve within the next two days, nearly 50% of hotels and restaurants in Mumbai may be forced to temporarily shut operations.” Smaller and medium-sized eateries are likely to be hit first as they operate with limited LPG reserves and have few alternatives for large-scale cooking. Electric or induction options exist but remain impractical for most commercial kitchens reliant on highintensity Indian cooking.

The Ministry of Petroleum and Natural Gas said on X that geopolitical disruptions and LPG supply constraints had led to orders for refineries to increase production for domestic use. It added that household LPG had been prioritised and a 25-day interbooking period introduced to curb hoarding and black marketing. Meanwhile, Mahanagar Gas Ltd (MGL), in a statement, assured that there has been no reduction in gas supply.

“In view of the prevailing geopolitical developments affecting global energy markets, there has been speculation about possible curtailment of gas supplies by MGL to its customers. At present, MGL is not facing any reduction in gas availability and continues to maintain normal CNG and PNG supplies across its operational areas,” the company said.

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