Middle East War Triggers LPG Crisis in India; Eateries Warn of Shutdown

March 10, 2026 – The Middle East conflict, involving Iran, Israel and the US, has majorly disrupted energy shipping routes in the Gulf affecting LPG exports from countries like Qatar and Saudi Arabia. This has resulted in higher global gas prices, reduced exports from Gulf producers and LPG cooking gas shortage, as a ripple effect from the ongoing war.

Tanker movement through the Strait of Hormuz, a key global oil and gas shipping route, has been severely disrupted, affecting LPG exports. As a consequence of this, many restaurants and hotels in India are warning of shutdowns owing to a shortage of commercial LPG cylinders used for cooking.

Bengaluru's hotels have warned that scores of eateries may be impacted thus affecting thousands who depend on restaurants for daily meals. Hotels in Bengaluru may shut operations from Tuesday (March 10), according to the Bangalore Hotels Association because commercial LPG supply has stopped suddenly.

In Mumbai, Chennai, Delhi and Gurugram, restaurants and street-food vendors are reporting shortages or delayed LPG deliveries. Some dealers say commercial cylinder supplies have halted since Sunday in parts of Mumbai.

Additionally, apart from the shortage, LPG prices have increased for both commercial and domestic cylinders owing to the global energy disruption. Global energy prices have gone past $100 a barrel.

The Indian government and oil ministry are reviewing the situation and considering measures to stabilise LPG supply to the hospitality sector. A new notification from the Union Ministry of Petroleum has extended the minimum wait time for booking domestic LPG refills after receiving one cylinder from 21 to 25 days to prevent hoarding. Earlier, you could book a refill the next day.

 Authorities say domestic LPG supply for households is still available, but commercial supply to restaurants is under pressure.

Hotels and restaurants rely heavily on commercial LPG cylinders for cooking. If supply does not resume soon, thousands of eateries and food services may temporarily close.

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