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Kerala hotels and restaurants directed not to store more than 5 commercial LPG cylinders

Civil Supplies Department squads have begun inspections to detect excess storage and the misuse of subsidised domestic cylinders.

Published Mar 11, 2026 | 5:15 PMUpdated Mar 11, 2026 | 5:15 PM

Commercial LPG shortage

Synopsis: At the same time, three public sector oil companies in the state have temporarily stopped refilling commercial LPG cylinders. To maintain essential cooking gas supplies, the Union government has invoked the Essential Services Maintenance Act (ESMA) and instructed oil companies to increase the production of domestic LPG as well as piped natural gas (PNG) and compressed natural gas (CNG).

Hotels and restaurants in Kerala have been directed not to store more than five commercial LPG cylinders, equivalent to about 100 kg beyond the quantity permitted under their authorised commercial connection.

The restriction, however, does not apply to large catering units or establishments that hold licences allowing them to store higher quantities within approved limits.

Civil Supplies Department squads have begun inspections to detect excess storage and the misuse of subsidised domestic cylinders.

Centre invokes ESMA

At the same time, three public sector oil companies in the state have temporarily stopped refilling commercial LPG cylinders. To maintain essential cooking gas supplies, the Union government has invoked the Essential Services Maintenance Act (ESMA) and instructed oil companies to increase the production of domestic LPG as well as piped natural gas (PNG) and compressed natural gas (CNG).

Domestic LPG bookings will now be allowed only once every 25 days.

For non-domestic supply, priority will be given to hospitals and educational institutions while tea and other industries will receive up to 80 percent of their recent average consumption and fertiliser manufacturers up to 70 percent, depending on availability.

The restrictions follow a revised order issued by the Ministry of Petroleum and Natural Gas on March 9, 2026, directing that all available LPG production components be diverted primarily to the domestic supply pool.

Also Read: Trimmed menus, reduced hours: How Bengaluru eateries are adjusting to LPG shortage

Hotels effected

Because hotels rely on commercial-grade cylinders rather than subsidised 14.2-kg domestic cylinders, the move has effectively disrupted their main fuel source.

With public sector companies accounting for more than 99 percent of the country’s LPG distribution, businesses have limited alternative supply options.

Domestic LPG consumers have also been asked to complete mandatory e-KYC verification through their gas agencies or via mobile apps linked to Aadhaar. The process can be initiated through the official LPG company apps or the portal.

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