LPG shortage hits Bengaluru hotels, industry suffers ₹100 crore loss in five days

Bengaluru : The ongoing tensions and conflict in the Middle East have begun affecting LPG supply in Karnataka, leading to a shortage of commercial gas cylinders across the state. The shortage has severely impacted the hotel and restaurant industry in Bengaluru, forcing several eateries to shut down temporarily while others have reduced menu items to cope with the crisis.

According to hotel industry representatives, the shortage of commercial LPG cylinders has led to heavy financial losses for businesses in the state capital. In Bengaluru alone, hotel owners claim that the industry has suffered losses exceeding ₹100 crore in the past five days due to disruptions in cooking gas supply.

There are nearly 40,000 hotels and eateries operating in Bengaluru, of which around 4,500 establishments are officially registered. Most of these businesses depend heavily on commercial LPG cylinders for their daily operations. However, the shortage has disrupted kitchen operations in many establishments, leaving hotel owners struggling to manage their businesses.

Several restaurants across the city have reportedly shut operations temporarily due to lack of cooking gas. Others have been forced to reduce the number of dishes on their menu in order to conserve the limited LPG available.

In view of the crisis, hotel owners’ associations have appealed to the Karnataka government for financial relief. They have requested the government to provide tax concessions to help businesses survive the difficult period.

The association has urged the government to grant a 20 to 25 percent reduction in various taxes, including property tax, to ease the financial burden on hotel owners.

Industry representatives also said they have received information that LPG supply to hotels across the state may improve from Monday. According to them, authorities have indicated that around 20 percent of the required LPG cylinders could be supplied to hotels starting tomorrow.

Hotel owners say that if the supply improves even partially, it will provide some relief to the struggling food service industry.

The shortage has also affected preparations for the upcoming Ugadi festival, which is just days away. Traditionally, demand for festive sweets such as Holige increases significantly during this period.

However, many holige-making units and small sweet shops have either reduced production or temporarily shut down due to the lack of LPG cylinders.

At a popular eatery on Sampige Road, staff were reportedly seen using traditional firewood stoves to prepare festive holige due to the shortage of cooking gas.

Hotel industry leaders have warned that if the LPG supply crisis continues, the financial losses in the sector could rise further in the coming days.