India, Mar 10 : In a move impacting the hospitality sector, the government has temporarily restricted the distribution of commercial LPG cylinders, directing oil marketing companies to prioritise supplies for essential institutions such as hospitals and educational establishments.
The decision, issued through the Ministry of Petroleum and Natural Gas, comes as authorities respond to supply disruptions and import challenges linked to ongoing geopolitical tensions. Internal communications sent to LPG distributors state that commercial cylinders will not be supplied to hotels, restaurants, and other non-essential commercial establishments until further notice.
Officials said the measure is intended to ensure uninterrupted fuel availability for critical public services during the current supply constraints. Under the revised instructions, hospitals and healthcare facilities will receive priority LPG supplies, while schools and educational institutions will continue to be supplied with cylinders. Commercial users outside these categories will face a temporary suspension of deliveries.
Alongside the restriction on commercial cylinders, authorities have also increased the interval between bookings for domestic LPG cylinders, signalling tighter management of available gas stocks.
Distributors confirmed that billing and loading of commercial LPG cylinders have been halted in many areas. Bottling plants are reportedly conserving available supplies primarily for domestic refilling, with limited quantities being released only for emergency requirements such as medical facilities.
Supply disruptions have also been reported at major LPG terminals. At the Indian Oil Corporation terminal in Devanagonthi near Bengaluru, commercial LPG dispatches have reportedly been suspended. The disruption is believed to be linked to delays in shipments arriving from ports in Chennai and Mangaluru.
The restriction has raised concerns within the hospitality industry. Representatives of the Bengaluru Hotels Association warned that prolonged shortages could disrupt operations for many hotels and restaurants that rely heavily on LPG for cooking. Industry members say extended supply cuts could force some establishments to temporarily close.
LPG dealers have indicated that the shortage could extend beyond a single city, depending on the availability of new consignments and distribution from bottling plants across the country.
Authorities said the current priority is to ensure uninterrupted supply for households and essential services. Commercial distribution is expected to resume once LPG imports stabilise and inventory levels improve. Until then, businesses dependent on commercial LPG may need to explore alternative fuel arrangements or adjust operations.