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No gas, no biz: UP eateries feel the heat of LPG crunch
The squeeze, triggered by global geopolitical disruptions and supply chain constraints, has left commercial consumers scrambling while oil marketing companies insist household supplies remain protected.
A sharp drop in commercial LPG cylinder supplies across Uttar Pradesh has pushed restaurants, hotels and caterers to the brink, with business owners warning they may be forced to shut down if refills are not restored within days.
The squeeze, triggered by global geopolitical disruptions and supply chain constraints, has left commercial consumers scrambling while oil marketing companies insist household supplies remain protected.
Sanjay Bhandari, executive director and state head of Indian Oil Corporation Limited in Lucknow, said the Union government has already acted to safeguard domestic supply.
“Amid global geopolitical tensions affecting fuel supply chains, the government has taken steps to increase LPG production and prioritise its availability for domestic consumers across the country. The decision was taken in view of disruptions in fuel supply routes and constraints in LPG availability in international markets,” he said.
Bhandari said oil marketing companies have been directed to ensure uninterrupted supply of domestic cylinders while rationalising distribution to other sectors.
Hospitals, educational institutions and other critical services will continue to receive LPG under the government’s directions. However, hotels, restaurants and caterers may face restrictions depending on stock availability.
To manage commercial demand, the Centre has constituted a three-member committee comprising executive directors from Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited to review representations and prioritise allocations.
The hospitality sector is already feeling the strain. Dinesh Sharma, head of the restaurant cell of Uttar Pradesh Adarsh Vyapar Mandal, said thousands of small businesses face an uncertain future.
“Today we met the additional district magistrate (ADM) civil supplies to express our concerns. For hotels, restaurants and roadside eateries that depend heavily on commercial cylinders for daily operations, it is a question of survival. If the supply does not normalise within a few days, we will have no option but to close establishments,” said Sharma, who also runs a sweet shop in Lucknow.
Santosh Sharma, president of the Uttar Pradesh Catering Association, said catering businesses have already begun scaling down operations.
“Many caterers have bookings and events lined up, but the shortage of commercial cylinders is forcing them to limit services. If the situation continues, the entire wedding and catering industry could face disruptions,” he said.
The scale of the crisis is visible in the numbers. Jagdish Raj, president of the All India LPG Distribution Federation (UP chapter), said daily demand in the state is enormous.
“In the state capital alone, there are around 5,000 eateries and nearly 2,000 hotels, restaurants, dhabas and cloud kitchens. Together they consume around 14,000 to 15,000 commercial cylinders every day,” he said.
Raj added that supply across the state has dropped to barely 20% of usual demand, creating serious difficulties for businesses.
Even domestic consumers are not entirely insulated. Residents in Lucknow, Kanpur, Prayagraj, Varanasi and Gorakhpur report longer waiting times. Cylinders have been sold in the black market at ₹2,500 to ₹3,000, depending on the area.
Meera Yadav, a 62-year-old homemaker in Lucknow, said delivery timelines have stretched beyond the usual schedule.
“Earlier the cylinder was delivered four to five days after booking, but now it is taking longer. That is why many consumers are going directly to gas agencies to collect the cylinder themselves,” she said.
Queues have been seen at several distribution centres, and heated exchanges have been reported at some agencies over cylinder availability.
Jyoti Gautam, ADM (civil supplies) in Lucknow, said the administration is keeping a close watch.
“The administration is keeping a strict vigil on the supply of domestic LPG cylinders. For some time, commercial consumers may have to wait. Supply will be restored depending on further instructions from higher authorities,” she said.
No commercial LPG for hotels in B’shahr, Prayag, Vns
Several districts in Uttar Pradesh have moved beyond warnings to action, with authorities in Bulandshahr, Prayagraj and Varanasi imposing outright restrictions on commercial LPG cylinder supplies to hotels, restaurants and eateries.
Bulandshahr
The district administration has barred hotels and restaurants from receiving 19-kg commercial LPG cylinders, restricting supplies only to hospitals and schools. Officials said the decision was taken as a precautionary measure amid concerns that tensions involving the United States, Israel and Iran could disrupt LPG supply chains.
District supply officer Abhay Singh said the restriction was implemented strictly in accordance with government instructions. “On the instructions of the government, the supply of commercial cylinders to hotels and restaurants has been stopped,” he said.
The move has alarmed business owners in a district that has more than 500 hotels and restaurants, over 1,000 roadside dhabas and nearly 5,000 street food vendors. Hotel operator Ashraf Saifi warned the fallout could be swift. “If the supply remains disrupted, hotels will only be able to operate for two to three days,” he said.
Prayagraj
Supply of commercial cylinders has reportedly been brought to a complete halt following directions from oil companies. Ajay Singh, operator of Vijay Gas Service in Civil Lines, said the directive left no room for interpretation. “The directive clearly states that the supply of commercial cylinders must remain suspended until further orders are issued,” he said.
Harjinder Singh, president of the Prayagraj Hotel and Restaurant Welfare Association, said the shortage has allegedly triggered black marketing, with a 19-kg cylinder that normally costs around ₹1,900 being sold for ₹2,500 in some cases.
Officials estimate supply has dropped by roughly 20 per cent, bringing available domestic cylinders down to around 11 lakh. Supplies to hospitals and essential services will continue, authorities said.
Manish Kumar Maurya, district magistrate, said teams have been deployed to check hoarding. “There is currently no shortage of domestic LPG cylinders in the district. Action will be taken against anyone involved in hoarding or illegal sales,” he said.
Varanasi
Petroleum companies have reportedly stopped deliveries of commercial cylinders to hotels, restaurants and sweet shops. “After receiving instructions from headquarters, all agencies have been asked to stop delivery of commercial cylinders,” said a senior gas company official, who did not wish to be named. Hotel and restaurant owners said operations have already been affected, though panic buying among domestic consumers has not yet been reported. Kumar Agarwal, president, Varanasi LPG distributors association, said, “The commercial gas supply has halted from Monday from the gas companies. We are not getting supply of the commercial cylinders from the gas companies.”
