Half of Mumbai hotels, restaurants could shut shop this week amid acute LPG shortage — No more dining out? What we know

More than half of restaurants in Mumbai could shut shop this week due to gas supply issues, with suppliers linking the commercial LPG cylinder shortage to the conflict in the Middle East.

The Indian Hotel & Restaurant Association (AHAR), the primary hotel association in Mumbai, said that around 20% of hotels in the city have shut down so far due to gas supply issues, as per a report by India Today.

If supply issues continue, at least 50% of hotels in India's financial capital could shut down over the next two days, the association warned.

“As of today, 10–20% of our members are facing problems. By tomorrow it will be 60%. By the day after tomorrow, it will be 100% impact on restaurants, forcing them to shut,” AHAR President Vijay Shetty was quoted as saying by the publication.

The number of operational hotels will depend on how much gas supply each establishment has, AHAR said.

It, however, added that no official decision had been taken by the association to shut hotels, and the decision to remain operational or shut shop will depend on individual hotel owners.

AHAR writes to petroleum ministry, seeks action

Shetty also said that that AHAR had written to the Ministry of Petroleum and Natural Gas, and was in touch with Maharashtra Civil Supplies Minister Chhagan Bhujbal.

On Monday, AHAR had penned a letter to the ministry, bringing to its attention a “significant operational challenges for many establishments within the hospitality sector”.

“Despite being a basic operational requirement for restaurants and hotels, commercial cylinders are becoming increasingly difficult to obtain through proper channels,” said AHAR in its open letter.

The association also called on authorities to look into the matter urgently — “Your timely intervention will greatly support thousands of restaurants and hospitality establishments that rely on uninterrupted gas supply for their daily operations,” AHAR said.

What Mumbai restaurant owners say

Restaurants across Mumbai said they started facing LPG supply issues from Sunday, with some shutting shop and others tweaking menus to try and remain operational.

Eateries and bakeries in the financial capital — including iconic ones like Gypsy, Sharda Bhavan, and J Hearsch & Co. — were modifying menus and shortening cooking processes to remain operational amid the LPG cylinder supply crunch, reported Indian Express.

The publication, however, reported that restaurants connected to gas pipelines had not faced issues yet.

Other cities facing supply crunch as well

The LPG cylinder supply issue isn't limited to Mumbai, with Bengaluru and Chennai restaurateurs also reporting issues.

The Bangalore Hotels Association on Monday said the hotel and restaurant operations across the city are likely to be affected starting March 10.

"Since the gas supply has stopped, the hotels will be closed from tomorrow," the association said in a statement.

"Since the hotel industry is an essential service, common people, students, and medical professionals, who rely on the hotels for daily meals, will be affected," it said.

The Chennai Hotels Association, meanwhile, wrote to Prime Minister Narendra Modi, calling for his attention to the matter and requesting urgent supply of LPG cylinders.

“We request you to please represent our case on an urgent basis, as the food industry works on a 24 x 7 basis for many hospitals who require the food to be supplied on time besides IT Parks, students at college hostels, train and business travellers will all be affected, if the supply of commercial LPG is hindered,” the association said.