20% of Mumbai Hotels Shut Due to LPG Gas Cylinder Shortage, 50% May Close in 3 Days

The impact of the Iran–Israel war appears to be directly affecting the economic capital of India, Mumbai. Around 20% of hotels in the city are currently closed due to a shortage of commercial gas cylinders. There are fears that this number could rise to 50% in the next three days if the supply is not restored.

Hoteliers are facing significant financial losses due to the lack of commercial LPG cylinders. Customers are also being affected as several hotels have been forced to suspend operations. If the situation does not improve in the coming days, there are concerns that the hotel business in Mumbai could face a major crisis.

Also Read | US-Israel War Against Iran LIVE Updates: Trump Says Tehran Will Be Hit ‘20 Times Harder’ If Oil Flow Is Stopped.

The ongoing conflict between Iran and US-Israel has disrupted the international gas supply chain, which has had a direct impact on the hotel industry in the city. Due to the acute shortage of commercial LPG cylinders, about 20% of hotels in the city have already closed, and industry representatives warn that up to 50% may shut within the next three days if the shortage continues, according to report.

Bangalore Hotels Association in a press release has said that the supply of gas cylinders for commercial use has been stopped today, despite the reassurance that there will be no disruption for 70 days.
And that hotels will be closed starting tomorrow. pic.twitter.com/zFLkI72q0Y

— Komal (@Komal_Indian) March 9, 2026

The war-like situation in the Gulf region has disrupted the supply of LPG gas. Supplies have also reportedly been affected in Bengaluru, and the impact is now being felt in Mumbai. Bangalore Hotels Association releases a notice saying, "The supply of gas cylinders for commercial use has been stopped from today. Since the hotel industry is classified as an Essential Service, the common people, senior citizens, students, medical and other people who depend on it will face difficulties in their daily meals. In addition, our hotel industry will also have to face difficulties until the gas supply returns to normal. Oil companies had said that there would be no disruption in gas supply for 70 days. However, the sudden stoppage of supply is a big blow to the hotel industry. Therefore, we expect the concerned Union Ministers to take immediate action in this regard and resume commercial gas supply and provide support to the hotel industry. Hotels will be closed from tomorrow due to the gas supply being cut off."

According to the Indian Hotel and Restaurant Association (AHAR), if the shortage persists, more hotels may be forced to shut down. Vijay Shetty, president of AHAR, said that if gas supplies are not restored soon, it could lead to a major crisis for the hotel industry in the city.