LPG Crisis Hits Hyderabad Hotels, Shutdown Fears Rise

A severe shortage of commercial LPG cylinders has begun to disrupt the hospitality sector in Hyderabad , forcing several hotels , restaurants , and hostels to scale down operations and raising fears of widespread closures if supplies are not restored soon.

Industry representatives say the shortage has affected eateries across the city, particularly in busy commercial zones and the IT corridor. Several establishments have already reduced their menus , avoiding items such as chapati, dosa and puri, which require continuous cooking and higher oil usage. Hostel kitchens serving IT professionals and students have also begun limiting such dishes to conserve fuel.

According to the Hyderabad Hotels Association , thousands of food establishments depend entirely on commercial LPG cylinders to run their kitchens. Association president Ashok Reddy said the situation has become severe , leaving many kitchens with gas supplies that may last only for a short period.

Several major restaurants in busy areas such as Banjara Hills, Ameerpet and Madhapur have reported operational disruptions as they require multiple cylinders each day to serve large numbers of customers. The shortage is particularly worrying during the ongoing Ramzan season, when many eateries prepare special evening meals and experience a surge in demand.

Hotel owners said some smaller establishments are attempting to cope by using induction stoves or even wood-fired cooking, but these options are not practical for most kitchens , especially those located on upper floors of multi-storey buildings. As a result, many eateries fear they may have to temporarily suspend operations.

Industry leaders warned that about 25 to 30 per cent of hotels in the city may close within a day if supplies do not improve, and nearly 75 per cent could shut down within two days. The crisis is expected to affect not only restaurants but also caterers , roadside food stalls and eateries operating in malls and cinema theatres.

The hospitality industry is now seeking urgent government intervention to resolve the situation. Hotel owners are planning to meet A. Revanth Reddy and urge the state government to ensure steady LPG supply and curb alleged black marketing of cylinders to prevent further disruption to the city’s food sector