LPG shortage hits restaurants across India, Centre approves 20% additional allocation

The National Restaurant Association of India (NRAI) has raised concerns over a severe commercial LPG shortage affecting restaurants in multiple states.

The National Restaurant Association of India has flagged concerns about the impact of the shortage of commercial LPG on the industry in many states. It has been pointed out that the industry should be considered among the “essential” sectors for allocation of commercial LPG.

In a social media post on X on Friday, NRAI stated, “We thank the Central Government for its efforts and appreciate the Delhi Government for allowing 42 per cent LPG supply to restaurants. However, restaurants across other states continue to face severe shortages. The industry employs 8.2 million people — we urge the Central Government to extend this support across all states and recognise restaurants as essential.”

State-level allocation issues persist

Sources said that despite directions from the Centre to states to allocate LPG to the restaurant industry, many states have been unable to do so, leading to a severe shortage. Industry bodies have also been engaging with the Chief Secretaries of various states to seek respite on the allocation of Commercial LPG, sources added.

Business losses and operational disruptions

Earlier this week, Pradeep Shetty of Hotel and Restaurant Association (Western India) had said that the LPG shortage has led to significant business losses, estimated at 25 to 30 per cent across India, with widespread operational disruptions including shorter service hours, limited menus, event cancellations or postponements, reduced guest capacity and declining occupancy levels in hotels. The crisis has also led to higher operating costs as businesses attempt to manage limited resources and explore alternative arrangements, he added.

Relief measures requested

The Hotel and Restaurant Association (Western India) has also written to the Maharashtra government requesting an extension or staggered payment of the Annual License Fee in the wake of the ongoing disruption in commercial LPG supply, which has severely impacted the hospitality sector across Maharashtra and the country.

Centre approves additional LPG allocation

Meanwhile, on Saturday, the Centre said it has approved an additional 20 per cent commercial LPG allocation to states, increasing the total supply to 50 per cent. The Petroleum Ministry asked states to allocate an additional 20 per cent on priority to restaurants, hotels, dhabas, industrial canteens, and community kitchens.

Published on March 21, 2026