An emerging update from the hospitality sector in Mumbai indicates that fuel and gas supply disruptions linked to the ongoing Iran–Israel conflict are beginning to severely affect hotel operations in the city. Around 20% of hotels in Mumbai have already shut down due to an acute shortage of commercial LPG cylinders, industry representatives say. Hoteliers warn that if supply is not restored quickly, the number of closed establishments could rise to nearly 50% within the next three days. The shortage is leaving restaurant kitchens unable to function, forcing many businesses to suspend services and leaving regular customers struggling to find affordable meals.
Hotel owners say the crisis is already visible on the ground. Kamalakar Shenoy, a hotel owner in Mumbai, said the shortage of commercial gas has pushed many eateries to the brink of closure. “This is absolutely true because our hotel will now be able to run only for another two to four hours, and we do not know what will happen after that,” he said. Shenoy added that suppliers claim there is adequate gas available, but hoteliers are facing a very different reality. According to him, companies have unofficially been instructed to maintain that supplies are normal despite the growing scarcity.
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The disruption is believed to be linked to supply chain disturbances caused by the conflict involving Iran, Israel and the United States in West Asia. Industry groups say the crisis is not limited to Mumbai alone. The hotel sector in Bengaluru has also reported similar problems after commercial LPG cylinder deliveries were suddenly halted. In a notice, the Bengaluru Hotels Association warned that hotels provide essential food services to citizens, including students, workers and senior citizens. The association urged the Union government to immediately intervene, restore commercial gas distribution and prevent further closures that could disrupt daily meals for thousands.
Industry body AHAR has also raised alarm over the situation, warning that the hotel and restaurant sector could face a major operational crisis if supplies remain disrupted. Vijay Shetty, president of the association, said many establishments are already struggling to continue services because kitchens depend entirely on commercial LPG cylinders. He cautioned that prolonged shortages would not only lead to more closures but also cause significant financial losses for small and mid sized eateries across Mumbai. Representatives are now urging authorities and oil companies to quickly restore supply lines to stabilise operations and prevent widespread disruption to the city’s food.