LPG supply has been impacted due to the ongoing conflict in the Middle East, forcing hotels across Bengaluru to remain closed from Tuesday (March 10) until further notice. The Bengaluru Hotels Association on Monday announced that the supply of commercial gas cylinders has been halted, creating a major crisis for the hospitality industry.
In a press release, the association said, "Senior citizens, students, patients and many others depend on hotels for their food. The disruption in gas supply will cause significant inconvenience to the public as well as the hotel industry."
The association has urged Union ministers to intervene and ensure the immediate restoration of commercial LPG supplies. Earlier on Saturday, the price of domestic cooking gas LPG was hiked by Rs 60 per cylinder.
Established in 1936, the association represents the interests of more than 3,000 restaurants and hospitality chains in Bengaluru. In its statement, the association said oil companies had earlier assured that there would be no disruption in gas supply for at least 70 days, and the sudden stoppage has come as a major blow to the industry.
The crisis comes amid escalating tensions in the Middle East. The US-Israel military campaign against Iran, and Iran's retaliatory closure of the Strait of Hormuz, has effectively choked one of the world's most critical energy shipping lanes.
LPG mainly consists of propane and butane, produced from natural gas processing and crude oil refining. The government has asked domestic refineries to increase propane–butane output to compensate for the supply disruption.
India can also import LPG from the United States, where it is produced as Natural Gas Liquids from shale gas. China and Russia also produce LPG, although China consumes most of its output domestically.
Bengaluru Hotels Association says that they won’t be able to operate their restaurants starting tomorrow due to a shortage of commercial cooking gas. pic.twitter.com/OMkqgmN3Ne
— PANKAJ CHOUDHARY (@PANCHOBH) March 9, 2026
Oil Marketing Companies, including Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL), currently meet around 40% of India's LPG demand through domestic production, bottling and distribution.
Nearly 60% of India's LPG comes from imports, largely from Persian Gulf countries such as Saudi Arabia and Qatar. With the Strait of Hormuz closed since March 1, these supplies have been significantly disrupted.
