Pune LPG Shortage Hits Hotel Industry: 10–15% Restaurants Shut, Many Operating With Limited Menu

Pune, 14th March 2026: The suspension of commercial LPG cylinder supply has begun to impact the hotel and restaurant industry in Pune, forcing around 10 to 15 percent of eateries in the city to shut down operations. Many hotel owners are struggling to keep their businesses running by reducing menu items and switching to alternative fuel options.

Restaurant owners said they are temporarily managing operations using electric stoves and other fuel alternatives. However, running kitchens at full capacity using these options is not feasible. As a result, several establishments are operating with a limited menu.

National Restaurant Association of India (NRAI) Pune chapter president Sayali Jahagirdar said the central government had announced that LPG cylinders would be supplied to the hotel industry. However, LPG companies are claiming they have not yet received official orders regarding the supply.

She said the hotel industry is on the verge of shutting down if the situation continues. “Currently, about 10 to 15 percent of hotels in the city have already closed. Many others are trying to continue operations with limited food items using electric stoves and other fuel options, but it is not possible to run the business at full capacity,” she said.

Hotel owners warned that if LPG supply is not restored within the next two to three days, most restaurants in the city may be forced to shut down completely.

Restaurant associations have demanded that instead of stopping supply entirely, LPG companies should at least provide cylinders in limited quantities so that businesses can continue operating.

According to industry representatives, nearly 15 to 18 lakh people in Pune depend directly or indirectly on the hotel sector for their livelihood. The LPG shortage has also affected the wider supply chain, including vegetable vendors and suppliers of chicken, mutton, eggs, and other related businesses.

Meanwhile, piped natural gas (PNG) supplied by Maharashtra Natural Gas Limited (MNGL) is functioning normally in the city. Hotels that already have PNG connections are continuing operations without disruption.
Against this backdrop, Maharashtra Natural Gas Limited (MNGL) held a meeting with hotel owners who do not yet have PNG connections. Around 150 to 200 hotel operators attended the meeting, where the company assured them that it would expedite the process of providing PNG connections. The company also expressed willingness to offer concessions in the security deposit required for the connection. Efforts have been initiated to provide urgent connections to these hotels.