Commercial LPG Supply Concerns Hit Gujarat Hospitality Sector
March 11, 2026
Ahmedabad / Vadodara / Surat: Restaurants across the state are struggling to reorganize their kitchen operations after the Gujarat government reduced natural gas supply to industries by 50% amid the ongoing conflict in West Asia, creating uncertainty over the availability of commercial gas cylinders widely used by food outlets.
On the other hand, fear of an LPG shortage triggered by the ongoing conflict in West Asia involving Iran, Israel, and the United States has led to long queues outside gas agencies in several cities of Gujarat. While the government and gas companies maintain that there is no crisis, the ground situation across major cities suggests panic buying, empty agencies, and a hospitality industry struggling to maintain operations.
Domestic Consumers in Distress
In cities such as Ahmedabad and Vadodara, several gas agencies have reportedly put up “No Stock” boards, leaving customers who waited for hours in the scorching heat empty-handed. The situation has worsened after the waiting period for refilling was reportedly increased from 21 days to 25 days, along with technical issues in online booking services, forcing citizens to rush to distribution centres in person.
In Vadodara’s Panigate area, the situation at Gayatri Gas Agency turned chaotic as hundreds gathered with empty cylinders.
One woman, who had been waiting since 9:00 AM, said:
“I have taken special leave from work just to get the cylinder. For a week we have been eating outside or cooking on an electric stove. How long can this continue? The electric stove takes too much time for office-going people.”
She also alleged that online booking was not working.
Another resident said:
“We have been standing here since 7:00 AM. The phones are switched off. The situation at home is bad — we are cooking on wood now.”
Commercial Supply Halted, Black Marketing Rises
The hotel and restaurant industry has been among the worst affected, as commercial gas supplies have reportedly been restricted to prioritise domestic consumers. Reports suggest that commercial cylinders are being sold in the black market for as much as ₹3,500 to ₹5,000.
In Surat, several restaurants have already shut operations.
A restaurant owner said:
“The cylinder which used to cost ₹1,500–₹2,000 is now being sold for ₹5,000. We serve meals for ₹50 to poor people. If the cylinder costs ₹5,000, how will we continue feeding people?”
Narendra Somani, President of the Gujarat Hotel and Restaurant Association, said that commercial gas supplies have been stopped in some areas, although PNG connections remain unaffected for now.
He said the situation is being monitored, but if the disruption continues, street vendors will be affected first, followed by small units, and eventually hotels and restaurants.
Conflicting Claims on Stock Availability
Despite visible queues at gas agencies, authorities appear to be downplaying the shortage.
Nityanand Joshi, a gas agency manager in Ahmedabad, appealed for calm, saying:
“We have enough stock. The company is supplying as many cylinders as required, but people are doing panic booking. Those who have two cylinders and one is still in use are also trying to book another. The company has more than 15 days of stock. I appeal to people not to hoard cylinders so that everyone can get supply. Please do not panic buy.”
Impact on Eateries, PGs and Daily Life
A restaurant owner in Vadodara questioned the government’s earlier assurances, saying:
“The government said there would be no problem in India for 70 days, but everything seems to have run out in just seven days.”
The impact of the fuel crisis is being felt beyond households. College canteens and PG (paying guest) accommodations are struggling to provide meals to students. In Ahmedabad, many small eateries have stock for only one more day, and owners say they may have to stop paying staff if the situation does not improve.
One eatery owner said:
“Many outlets have gas stock only for one or two days. We have started using induction units for tea and omelettes, but bulk cooking on induction requires different utensils, and we may have to limit menu items.”
Industry representatives said restaurants with piped natural gas (PNG) connections may get temporary relief, but costs are rising.
Sheel Dhanani, member of the Food and Dairy Committee of the Gujarat Chamber of Commerce and Industry (GCCI), said commercial cylinder prices have already increased to ₹3,000–₹4,000 due to black marketing.
“Restaurants with piped gas will also face higher bills. Induction cooking takes longer. Some restaurants may have to reduce menu items, and service could slow down. Passing the full cost to customers immediately may not be possible, which will put pressure on margins if the disruption continues,” he said.
Uncertainty Continues
As the conflict in West Asia shows no signs of easing, people across Gujarat remain caught between official assurances of sufficient stock and the reality of empty cylinders, long queues, and rising prices.
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