Middle East Crisis Hits India: Gas shortage forces 20% of Hotels in Mumbai, Bangalore to Shut

By: Kashish Chawla

On: Tuesday, March 10, 2026 1:25 PM

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Mumbai Gas Shortage News: The ongoing war in the Middle East is now directly affecting India. Meanwhile, the Indian Hotel and Restaurant Association (AHAR) has expressed concern over the shortage of commercial cylinders. AHAR stated that there is a severe shortage of commercial cylinders, forcing approximately 20% of hotels and restaurants to suspend operations. AHAR has also written to Petroleum Minister Hardeep Singh Puri, demanding a solution. AHAR delegation will meet with Maharashtra Food and Civil Supplies Minister Chhagan Bhujbal today regarding the gas crisis.

Mumbai Gas Shortage: Up to 50% of Mumbai’s restaurants may close

Mumbai Gas Shortage
Mumbai Gas Shortage (source- social media)

AHAR President Vijay Shetty warned that if supplies are not restored within the next 72 hours, up to 50% of Mumbai’s restaurants could close. The escalating conflict between the US, Israel, and Iran has virtually halted tanker traffic through the Strait of Hormuz. India imports a significant portion of its LPG gas through this route, so supplies have been severely affected. This crisis has arisen for Mumbai’s hotels and restaurants after many years.

What did Aahar say in its letter to the Petroleum Minister?

Mumbai Gas Shortage
Mumbai Gas Shortage (source- social media)

Aahar wrote to the Petroleum Minister stating, “Our association represents approximately 8,000 small restaurants, permit rooms, and hotels and is one of the largest hospitality associations in Maharashtra with 65 affiliated organisations. Aahar represents the interests of small and medium enterprises as well as star-class hotels and restaurants. We understand that the current situation is beyond our control due to global geopolitical factors, but any disruption in LPG supply will have a serious and immediate impact on the entire industry.

Restaurants and hotels rely heavily on LPG for their daily cooking operations. Any disruption will severely impact the livelihoods and revenues of all stakeholders.”

Aahar further wrote, “Our industry plays a vital role in providing employment, food, and support services to millions of migrant workers and their families. Currently, approximately 4 million direct jobs and 16 million indirect/self-employed people in Maharashtra depend on this sector.”

Mumbai Gas Shortage News: A complete shutdown will cause these problems

Mumbai Gas Shortage News
Mumbai Gas Shortage News (source- social media)

The Aahar stated, “A complete shutdown of PNG supply will severely impact the income sources of workers/self-employed individuals and disrupt essential daily services provided by restaurants and hotels. Such disruption will also significantly impact the government’s revenue, which is generated from all categories of customers, especially the large working-class population in various states who depend on restaurants for their daily meals and affordable dining options.”

Mumbai Gas Shortage News: 100% gas cut will force hotels to close, industry appeals

Given the unavoidable global situation, we humbly request that the industry can manage with up to a 25% reduction in PNG supply. However, a 100% reduction or complete closure would make it practically impossible for establishments to operate. Therefore, we request your intervention to ensure that the hospitality industry continues to receive a minimum amount of PNG supply, allowing restaurants and hotels to operate smoothly and protecting the livelihoods of employees.

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Kashish Chawla

Kashish Chawla is a content writer at Punjab Kesari. A journalist with 1.5+ experience years across digital media. She is graduated from Bachelors in Journalism and Mass communication from Chaudhary Charan Singh University, worked with Zee Media as a website content writer, and as a reported with Indianewslive.