Published Mar 12, 2026 | 8:13 AM ⚊ Updated Mar 12, 2026 | 9:35 AM
Commercial LPG cylinders. (iStock)
Synopsis: Over the past two days, the supply of commercial LPG cylinders has sharply declined, severely affecting hotels, private lodges, and food establishments across Tamil Nadu. Hotel owners warned that if the situation does not improve soon, they may be forced to shut down operations entirely.
Amid rising tensions between the US-Israel and Iran, an LPG shortage has been reported across India, and Tamil Nadu has not been spared. Over the past two days, the supply of commercial LPG cylinders has sharply declined, severely affecting hotels, private lodges, and food establishments across the state, many of which are struggling to operate, sources said on Wednesday, 11 March.
In a notable instance, MGR University in Chennai declared a holiday due to the gas shortage and sent students staying in hostels back home, citing the inability to continue cooking services.
Speaking to South First, a gas supply company owner from Coimbatore said, “If this situation continues for three more days, the entire state will be affected. At present, the supply of commercial LPG has completely stopped.”
Hotel owners said they are currently managing with the limited cylinders they have in stock. However, they warned that if the situation does not improve soon, they may be forced to shut down operations entirely.
Tamil Nadu has thousands of restaurants and eateries, many of which operate alongside lodging facilities. The current LPG shortage has affected these establishments irrespective of their size.
Ezhumalai, who runs a small hotel in T Nagar, Chennai, said, “I require three cylinders a day. With supply now drastically reduced, I am unable to run my shop properly.”
If his shop closes, the impact will not be limited to him alone. In a densely crowded commercial area like T Nagar, thousands of textile shop employees rely on small eateries like his for affordable meals.
“In my shop, people can eat for as little as ₹60. If I close, the workers in nearby textile shops will suffer. It will become very difficult for poor people to find affordable food,” Ezhumalai said.
Similarly, the Madurai Thevar Hotel in Pondy Bazaar is also struggling due to the lack of LPG cylinders.
Rajan, who owns the hotel, told South First, “I run three outlets, and each outlet requires four cylinders a day. But now supply has almost stopped, and it is becoming impossible to operate the shops.”
A notice pasted outside Saptagiri Hotel, located nearby, stated that the establishment had been closed due to the gas shortage.
Larger chains such as Anandhas and Annapoorna have temporarily stopped preparing food items that require long cooking times, in an attempt to continue operations for a few more days.
Meanwhile, companies with centralised kitchens such as Adyar Ananda Bhavan (A2B) have started using large induction stoves as an alternative to LPG cylinders.
Adyar Ananda Bhavan has more than 100 branches across Tamil Nadu and is also facing severe difficulties due to the shortage.
Speaking to the media, Srinivasan, the company’s administrative manager, said, “Each outlet requires at least five to 15 cylinders per day. Because of the shortage, we are facing serious difficulties. We had a stock that could last for a couple of days, but if the situation continues, it will affect us badly. The government must take immediate action.”
In this context, on 11 March, representatives of the Hotel Owners’ Association held discussions at the Secretariat with Food and Civil Supplies Minister R Sakkarapani, departmental secretaries, and representatives from oil companies, including Indian Oil.
Earlier, on 10 March, a meeting chaired by Chief Minister MK Stalin was held to review the situation. The Tamil Nadu government has also written to Prime Minister Narendra Modi seeking urgent intervention.
The LPG shortage has not only impacted the food industry but also several essential services, including auto-rickshaws and water supply operations.
In Tamil Nadu, more than three lakh auto-rickshaws operate, including around 1.2 lakh in Chennai alone. Of these, about 40,000 autos run on LPG or CNG. However, auto-rickshaw drivers say that several fuel stations have stopped supplying CNG and LPG, disrupting their operations.
Balasubramaniam, district secretary of an auto workers’ union, said the situation has severely affected drivers.
N Babu, a driver, said, “Taking advantage of the situation, some stations are charging higher prices. At one station, CNG costs ₹59, while at another it goes up to ₹74. Even earlier, we had to wait for hours to fill the CNG. Now it is not available anywhere.”
He warned that with school examinations currently underway, the disruption of auto-rickshaw services could significantly affect students and commuters.
Balasubramaniam added that there are already very few CNG and LPG filling stations in the state. Due to the current shortage, more than 20,000 auto-rickshaws have remained off the roads in the past two days. If the situation continues, over 40,000 auto-rickshaws in Chennai could stop operating, he warned.
Similarly, mineral water supply units and other businesses that rely on gas-powered equipment are also struggling to function, according to operators involved in door-to-door water distribution.
Amid rumours circulating across India that LPG would soon become unavailable, many households have rushed to book domestic cylinders. Some people have also started purchasing induction stoves, fearing a shortage.
However, gas distributors said there has been no disruption in the supply of domestic LPG cylinders so far.
An LPG supply company owner told South First, “Last Tuesday, the oil corporations called all regional distributors and warned that supply would decrease. Now the supply of commercial cylinders has completely stopped.”
Typically, commercial LPG distributors place orders ranging from 50 to several hundred cylinders, depending on demand, and receive deliveries every other day. However, currently, each distributor is receiving only 10 to 20 commercial cylinders from oil companies.
At the same time, domestic LPG supplies remain steady, with 500 to 600 cylinders arriving per load every day, the distributor said. However, the distributor alleged that some private gas suppliers are selling commercial cylinders in the black market for ₹3,000 to ₹4,000.
Confirming this, an employee of a gas company in Chennai said, “Private companies are selling 19-kg commercial cylinders for around ₹3,900. We don’t know how they are getting these cylinders.”
He added that there are no restrictions on supplying domestic cylinders to households and commercial cylinders to hospitals, Amma canteens, and similar essential services.
When asked about complaints from customers who said they were unable to book domestic cylinders over the past two days, he explained that the surge in bookings due to public panic had caused server issues.
“Many people are trying to book at the same time because of fear. That is why some bookings are failing. Otherwise, the supply itself is normal,” he said.
While domestic LPG supply remains stable, gas distributors said they currently have no clear information about when commercial LPG supply will resume, leaving the future of hotels and several related businesses uncertain.
(Edited by Muhammed Fazil.)
