Wednesday, March 11, 2026

One lakh restaurants in Tamil Nadu face closure as LPG shortage deepens

A severe shortage of commercial LPG cylinders across Tamil Nadu could force nearly one lakh restaurants to shut down within the next two days.

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March 11, 2026
INDIA

Chennai: A severe shortage of commercial LPG cylinders across Tamil Nadu could force nearly one lakh restaurants to shut down within the next two days, the Tamil Nadu Hotel Owners Association has warned and urged the Centre to take urgent measures to ensure uninterrupted supply of cooking gas to commercial establishments. 

Association president M. Venkatasubbu said the disruption in the supply of commercial cooking gas has already begun affecting restaurants in several districts.

If the situation continues, eateries ranging from large restaurants to small tea stalls may be forced to close operations.

According to him, the hospitality sector supports a massive workforce.

“Around 50 lakh workers are directly dependent on restaurants, while another 50 lakh people depend on the sector indirectly. If gas supplies do not resume immediately, the entire industry will be pushed into a crisis,” he said.

He urged the Union government to take urgent, war-footing measures to ensure uninterrupted supply of commercial LPG cylinders to restaurants and hotels.

Venkatasubbu also pointed out that although large restaurants are classified as factories under the Factory Act, they do not receive the electricity tariff concessions given to industrial units.

In view of the current crisis, he requested the government to allow restaurants to purchase electricity from private sources at lower rates as an alternative.

Meanwhile, the gas supply disruption — linked to the ongoing geopolitical tensions involving Iran, the United States and Israel — has already begun affecting several districts in Tamil Nadu.

While the situation remained largely under control on Tuesday in districts such as Chennai and Vellore, tourism-dependent restaurants and hotels may start shutting down from Wednesday if supplies do not improve.

Reports from Villupuram and Kallakurichi indicate a sharp rise in bookings for domestic LPG cylinders, with delivery waiting periods increasing from 21 days to 25 days.

Gas distributors said cylinders can now be supplied only to customers who have already booked them.

Restaurant owners in Tiruchi, Pudukkottai, Thanjavur, Karur, Perambalur and Ariyalur said they have stock of commercial LPG cylinders sufficient for only two more days, as supply trucks have not reached these districts recently.

Shortages have also been reported in Tiruvannamalai and Cuddalore, where booking for commercial cylinders has been temporarily suspended.

In Coimbatore, several large restaurants have already reduced menu items and shortened operating hours to conserve gas.

The crisis is also affecting districts such as Madurai, Ramanathapuram, Dindigul, Theni, Sivaganga and Virudhunagar, where the supply of commercial LPG cylinders has reportedly been halted since Monday.

In the pilgrim town of Rameswaram, nearly 90 per cent of restaurants lack facilities for firewood cooking, making them heavily dependent on LPG cylinders.

If supplies are not restored quickly, widespread restaurant closures across Tamil Nadu appear imminent, industry representatives warned.

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