From Delhi to Bihar, LPG crisis panic India’s hotels & restaurants as Iran War disrupts supply: Check price in different states

Opposition leaders take a dig at the Centre after reports on Wednesday indicated the cooking-gas crisis, which has been sparked by the Iran war intensifying across India, with restaurants, hotels and eateries from Bangalore to Bihar. The development folded after the movement of tankers through the Strait of Hormuz affected about 60 mmscmd of supply from the Middle East.

The disruption in LPG supply amid the conflicts has exposed a hidden operational risk in the food service sector of India, as independent restaurants are facing immediate closure risks along with the large chains, which are facing margin pressures. The price range of LPG gas in the different states is different.

Sachin Jain, founder of The Benne Mane, a South Indian restaurant in Bengaluru, stated that in the past few days, gas distributors have nearly doubled the price. “We are now having to buy cylinders for around Rs 3,500–Rs 4,000 each, and distributors are saying the price may increase further,” he said, Deccan Herald reported. He added that all the restaurants already function on very tight margins, and those increased prices make it difficult to manage day-to-day activities.

The Founder and Director of Khan Saheb Foods Pvt Ltd, a popular fast-food chain in Bengaluru, Shorab Choudhary, said, “This situation is unprecedented for us. Our gas vendors, who have been supplying us reliably for the past 10 years, have informed us that they currently have no stock available. We completely ran out of gas yesterday and had to urgently source cylinders from alternative vendors at almost double the usual price."

He stated that generally commercial gas cylinders cost around Rs 1,800 – Rs 1,900 per cylinder, but yesterday it cost them Rs 3,500 per cylinder. At this price also, there is no guarantee that suppliers is going to provide continuous stock in the coming days.

Restaurants are more exposed to disruptions than households because they depend heavily on 19-kg commercial LPG cylinders to operate high-volume cooking equipment such as ovens, fryers, grills and fast-paced kitchen lines. The effects differ across restaurant chains: smaller outlets may be forced to shut down quickly, while larger chains could face reduced operating capacity. Rising LPG costs may also push quick-service restaurants (QSRs) to raise menu or delivery prices, putting additional pressure on their profit margins.

LPG gas price in different states and cities

Domestic and commercial LPG prices vary across major Indian cities and states. In New Delhi, a domestic cylinder costs Rs 913 while a commercial cylinder is priced at Rs 1,884.50. In Kolkata, the rates are Rs 939 for domestic LPG and Rs 1,988.50 for commercial cylinders, while in Mumbai they stand at Rs 912.50 and Rs 1,836 respectively.

In Chennai, domestic LPG costs Rs 928.50 and commercial cylinders Rs 2,043.50. Prices are higher in cities such as Hyderabad (Rs 965 domestic, Rs 2,105.50 commercial), Lucknow (Rs 950.50 domestic, Rs 2,007 commercial), Patna (Rs 1,002.50 domestic, Rs 2,133.50 commercial), and Bengaluru (Rs 915.50 domestic, Rs 1,958 commercial).

Across states, LPG prices also differ due to local taxes and transportation costs. In Maharashtra, domestic LPG costs Rs 912.50 and commercial cylinders Rs 1,836, while in Tamil Nadu the prices are Rs 928.50 and Rs 2,043.50 respectively. In Uttar Pradesh, domestic LPG is priced at Rs 950.50 and commercial LPG at Rs 2,007. In Kerala, the rates are Rs 922 for domestic and Rs 1,912 for commercial cylinders, while in Gujarat they stand at Rs 920.50 and Rs 1,946 respectively. Prices are significantly higher in some north-eastern states and island territories. For instance, domestic LPG costs over Rs 1,060 in Mizoram and Manipur, while in Tripura it is around Rs 1,073.50.

Ministers react to the LPG crisis

Following the rise in LPG gas price, AAP chief Arvind Kejriwal squarely accused Prime Minister Modi. “Modi has made a mistake by demolishing India's non-aligned policy of 75 years. We should not have aligned with anyone. He stood by Israeli Prime Minister Benjamin Netanyahu a day before the war began. We have made Iran our enemy,” he said, a new agency PTI reported.

Kejriwal also warned, highlighting that hotels and restaurants could shut if the situation worsened. On Wednesday, the AAP government in Punjab passed a resolution in the state Assembly against the Centre over the rising LPG prices and shortage of commercial cylinders, noting that it would lead to the shutdown of restaurants, eateries and other sectors.

In Bengal, minister and TMC spokesperson Shashi Panja indicated that it was a pan-India crisis. “It is the lack of foresight of the BJP government at the Centre. The common people are in distress, suffering,” she said.

Chief Minister of Tamil Nadu, MK Stalin, said he had written to the prime minister and the Union petroleum minister highlighting the ongoing cooking-gas shortage. Pinarayi Vijayan, chief minister of Kerala, cautioned that supply uncertainties could disrupt hotels and restaurants, particularly during the period of increased demand in Ramadan. Meanwhile, Siddaramaiah, chief minister of Karnataka, has also appealed to Union petroleum and natural gas minister Hardeep Singh Puri for immediate intervention.

In Delhi, the Lawyers’ Canteen at Delhi High Court has temporarily stopped serving main courses because of the LPG shortage. A notice issued on Wednesday said the absence of gas cylinders had made it impossible to prepare regular meals.

Uttarakhand has begun exploring alternative solutions. Forest minister Subodh Uniyal said the government could allow firewood to be used commercially if the shortage worsens. In Puducherry, hotel owners warned they might have to shut operations if commercial LPG supplies are not restored soon. Many establishments have started using firewood, cutting working hours, or partially shifting to electric cookers to keep kitchens running. The price of firewood has jumped to about Rs 1,000 per “kundu”, up from the usual Rs 300. Even so, it can only be used for certain South Indian dishes and is unsuitable for items such as Chinese cuisine.

In addition, commercial kitchens in Chennai, Bengaluru, Kolkata, and other cities have also switched to wood fires. They are mostly using scrap lumber as fuel to ensure the availability of some food. In some places, the situation has worsened to the point where restaurants have stopped serving certain dishes or replaced items that require more gas to cook with quick fast-food options.