Mumbai's Hospitality Sector Reels As Commercial LPG Shortage Forces Shutdowns & Disrupted Services

· Free Press Journal

Mumbai: The ongoing shortage of commercial LPG is disrupting Mumbai’s hospitality sector. Industry bodies said hotels and restaurants are struggling to sustain operations and urging the government to introduce relief measures. Hoteliers say the fuel crunch has forced many to shift to alternative cooking arrangements such as electric stoves and induction cooktops, while continuing to pay commercial electricity tariffs.

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Industry bodies estimate that nearly 30% have already shut operations, while several others continue with curtailed services. A Khar-based hotelier, Paramjit Ghai, said the sector requires immediate support. “The industry should be incentivised in this crisis. A waiver on electricity bills and relief in liquor licence fees should be considered,” he said.

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Vice-president of the Federation of Hotel and Restaurant Associations of India, Pradeep Shetty, who is also spokesperson for the Hotel and Restaurant Association Western India, said many establishments are operating with limited kitchen activity. He said, “If supplies do not reach the market soon, more establishments, especially small and medium-sized eateries, may be forced to shut temporarily.”

Shetty noted that the sector has taken note of the Union government’s announcement to allocate around 20% of the average monthly commercial LPG requirement to ease the shortage, though uncertainty remains over how quickly supplies will reach the market. Congress MLA Amin Patel also raised concerns after noticing long queues outside gas agencies in Mumbai.

Residents, including elderly citizens, were waiting with empty cylinders in the heat. Patel said the shortage has disrupted mid-day meal cooking in some civic schools. He added that the government has taken steps to address the issue and ensure LPG supply to residents in Maharashtra and other regions of the country.

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