'20% Hotels Shut, Commercial Cylinders Costing At ₹3,000': Mumbai Hoteliers Seek Urgent Assistance From Govt Amid Acute Gas Crisis

Mumbai: Hoteliers of Mumbai have sent an SOS to the Union Petroleum Ministry and the state civil supplies department regarding the acute shortage of LPG cylinders.

Vijay Shetty, President of the Association of Hotels & Restaurants (AHAR), told FPJ on Tuesday that “already 20% of hotels in Mumbai have shut over fuel shortage and another 60% will shut down in the next couple of days. The crisis caused by the war in Iran is impacting us now.”

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Shetty said a thriving black market in LPG cylinders has emerged. “A commercial cylinder costing Rs 1,600 each is now being sold for Rs 3,000.”

A delegation of AHAR led by Shetty is expected to meet Minister for Civil Supplies Chhagan Bhujbal on Tuesday to discuss the grim situation.

Mumbai Gas Crisis: 'Supply Cut Beyond 25% Could Be Catastrophic,' Says Hotel & Restaurant Association, Seeks 'Kind Intervention' Amid 20% Shutdown

The Indian Hotel & Restaurant Association (AHAR), which represents numerous establishments across the Mumbai Metropolitan Region, has raised urgent concerns with the Union Government over a potential energy crisis threatening the hospitality sector.

AHAR's Appeal To Centre Amid Gas Crisis

In a formal letter to the Ministry of Petroleum and Natural Gas, AHAR President Vijay K. Shetty stressed that while the industry could cope with a limited reduction in PNG supply, a complete stoppage would be disastrous, affecting both businesses and millions of workers dependent on them.

The association emphasised that the sector could handle up to a 25 per cent reduction in supply, but any cut beyond this would be catastrophic, making it 'practically impossible' for hotels and restaurants to continue operations.

Mumbai, Maharashtra: Minister Yogesh Kadam says, "For now, orders have been given to stop the supply for commercial usage. However, due to this decision, several hotels have been affected, but so far, its impact at the ground level is not visible. But this situation will return… pic.twitter.com/O6njY4CEdl

— IANS (@ians_india) March 10, 2026

Meanwhile, Maharashtra Minister Yogesh Kadam stated that orders have been issued to halt the supply of Piped Natural Gas (PNG) for commercial use. “Currently, several hotels have been impacted, but the effects are not yet apparent on the ground. We expect the situation to return to normal shortly,” he added.

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