LPG Shortage Explained: How Hotels and Restaurants Are Adapting
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India's LPG Shortage: Geopolitical Tensions Impact Hotels, Restaurants Cope with Menu Changes
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CNBC TV18•14-03-2026, 08:19
India's LPG Shortage: Geopolitical Tensions Impact Hotels, Restaurants Cope with Menu Changes
•LPG supply disruptions, stemming from West Asia geopolitical tensions and Strait of Hormuz closure, are severely impacting hotels and restaurants across major Indian cities.
•The Strait of Hormuz is crucial for 85-90% of India's LPG imports, and its disruption has led to widespread shortages and panic bookings.
•Hospitality businesses, heavily reliant on commercial LPG, face operational challenges, menu adjustments, and potential shutdowns, with some vendors allegedly black marketing cylinders.
•Restaurants are adapting by trimming menus, prioritizing less gas-intensive dishes, and switching to alternative cooking methods like tandoors, induction stoves, wood, and coal.
•The government invoked the Essential Commodities Act, urged no panic, and allocated 20% of average monthly LPG to hospitality, while states explore PNG alternatives.
