LPG Cylinder Shortage Threatens Food Industry with Massive Losses

The city is grappling with a severe LPG cylinder shortage, raising alarms in the food industry. With hotels and restaurants facing operational shutdowns, experts warn of potential daily losses reaching ₹100 crores. The situation threatens the livelihoods of thousands, prompting urgent appeals to authorities for increased gas supply. As businesses struggle to cope with rising costs and dwindling resources, the need for a swift resolution has never been more critical. Read on to discover the full impact of this crisis on the local economy and the measures being taken to address it.

By Narendra Chaudhary Mar 17, 2026, 13:42 IST

Concerns Rise Over LPG Cylinder Shortage

The ongoing shortage of LPG cylinders in the city has sparked significant worries within the food sector. Due to disruptions in gas supply, businesses such as hotels, restaurants, dhabas, and catering services are facing a severe crisis. Industry experts warn that if the supply does not normalize soon, the food sector could incur losses of up to ₹100 crores daily.

Hotels and Restaurants Hit Hardest

The impact of the LPG cylinder shortage is most acutely felt by hotels, restaurants, and street food vendors. In several locations, kitchens have had to shut down due to the lack of gas. This situation is directly affecting the livelihoods of those working in small dhabas and food stalls.

Members of trade associations emphasize that the food industry is heavily reliant on LPG. The sudden drop in supply has disrupted operations significantly. Some hotel owners have reported having to purchase cylinders at inflated prices on the black market, leading to increased operational costs.

Supply Shortage as the Main Cause

Reports indicate that the supply of LPG cylinders has not been consistent in recent days. Distributors are facing a shortage of stock, resulting in fewer cylinders being available to meet demand. This situation is directly impacting business operations.

Business organizations have urged the administration to find a quick resolution. They warn that if the current situation persists, many small hotels and restaurants may be forced to close.

Potential Daily Losses of ₹100 Crores

Traders in the food industry estimate that the city generates millions of rupees in business daily. The ongoing gas shortage could lead to losses of around ₹100 crores, putting thousands of jobs at risk.

Appeal to Authorities

Business owners have appealed to the administration and gas companies to urgently increase the supply of cylinders. They stress that the food industry is a vital component of the city's economy, making it essential to resolve this issue promptly.

Officials have stated that efforts are underway to restore normal supply levels, and improvements are expected soon.