Hyderabad: The escalating geopolitical tensions in West Asia are beginning to ripple across local economies, with Hyderabad’s hospitality sector expressing growing concern over a sudden shortage of LPG cylinders. In response to the developing crisis, hotel and restaurant owners in the city convened a crucial meeting on Tuesday night, March 10, to assess the situation and explore immediate solutions.
Industry representatives say the shortage is linked to the ongoing conflict involving Iran, the United States, and Israel. The tensions have reportedly disrupted maritime movement through the Strait of Hormuz, one of the world’s most critical oil and gas shipping routes. Any obstruction in this narrow passage significantly impacts global energy supply chains, as a large portion of fuel shipments destined for Asia pass through this corridor.
Hyderabad’s restaurant industry, which depends heavily on commercial LPG cylinders for daily operations, is now facing an uncertain situation. Several restaurant owners say that distributors have already begun reporting limited or zero stock availability, raising fears that many eateries could temporarily suspend operations within the next couple of days if supplies do not stabilize.
One of the owners of a well-known traditional restaurant in the city said that the shortage is becoming increasingly severe. According to him, even attempts to procure cylinders at higher prices in the grey market have failed due to a complete depletion of stock. “The problem is not just about price. There is simply no supply available. If the situation continues like this, many establishments will have no option but to halt operations,” he said.
Another restaurateur explained that commercial LPG allocations appear to be getting redirected toward essential sectors such as hospitals and residential households. While the move prioritizes public welfare, it is leaving hotels and restaurants struggling to sustain their kitchens during one of the busiest periods of the year.
The situation is particularly challenging as the holy month of Ramzan has significantly increased food demand across Hyderabad. Restaurants, especially in areas like the Old City, normally operate at full capacity during this period with extended menus and late-night service. However, several hotel owners now fear they may have to drastically reduce menu offerings or limit operating hours due to the gas shortage.
Junaid Aziz, who manages the well-known Hotel Nayab in the Old City, said that restaurants are exploring traditional cooking methods as a last resort. According to him, switching to firewood-based stoves is one possible alternative, but it comes with its own operational challenges.
“Running a modern restaurant using firewood stoves is not easy. It requires a separate infrastructure, storage space for wood, and additional manpower. With the Ramzan rush, it will be extremely difficult to maintain normal service standards,” he explained. He added that many restaurants might continue operating with limited capacity, serving only a fraction of their usual menu items.
Restaurant owners in the IT corridor and commercial hubs of the city are also feeling the strain. One operator in Hitech City noted that his establishment typically consumes around 15 commercial cylinders every day to sustain cooking operations. However, on Tuesday his supplier was able to deliver only three cylinders, raising concerns about how long the restaurant can continue functioning under such constraints.
Industry insiders warn that if restaurants begin shifting toward firewood stoves, the cost of firewood itself could rise sharply due to increased demand. Moreover, not all restaurants have the space or infrastructure to accommodate such cooking setups, making the transition difficult for many establishments.
Despite the concerns raised by the hospitality sector, the Telangana Civil Supplies Department has maintained that the overall LPG supply situation in the state remains stable.
Civil Supplies Commissioner M. Stephen Raveendra stated that there is no immediate cause for public panic. According to him, oil marketing companies are continuing to supply approximately 2.3 lakh LPG cylinders daily across the state.
“The supply chain is functioning normally and the situation is comfortable at present. Citizens and businesses should not panic,” the commissioner said while addressing concerns regarding the alleged shortage.
He further emphasized that the government is closely monitoring LPG distribution and warned that strict action will be taken against any individuals or agencies found hoarding cylinders or engaging in black marketing.
India is among the world’s largest consumers of LPG, using approximately 31.3 million tonnes annually. Nearly 87 percent of this consumption occurs in domestic households, while the remaining portion is used by commercial establishments such as hotels, restaurants, and small businesses.
Given that India imports nearly 85–90 percent of its oil and natural gas requirements from West Asia, any geopolitical disturbance in the region can have immediate repercussions on supply chains and fuel availability.
For Hyderabad’s restaurant industry, the next few days will be crucial. The outcome of the meeting held by hotel and restaurant owners is expected to determine whether establishments will temporarily shut down, scale back operations, or adopt alternative cooking methods until LPG supplies stabilize.
If the situation continues, it could affect not only restaurant businesses but also thousands of workers and suppliers who depend on the city’s vibrant food industry for their livelihoods.