Commercial LPG Crisis In Hyderabad: 90 Percent Of Hotels, Restaurants Likely To Shut Within 48 Hours

A severe commercial LPG shortage has pushed Hyderabad's hotel and restaurant industry to the brink, with industry representatives warning that nearly 90 per cent of eateries in the city and across Telangana could shut down within the next 48 hours if supplies are not restored. The crisis is expected to hit small and medium establishments first, as most operate with only limited fuel reserves.

Small Hotels Running Out Of Fuel Stock Fast

The Telangana State Hotel Association (TSHA) has raised alarm over the rapidly worsening situation, saying many small hotels and eateries have only one to two days of commercial gas stock left. While some larger establishments may have slightly better reserves, the majority of the city's food service network is highly vulnerable.

Speaking on the seriousness of the supply disruption, S Ram Murthy, Treasurer of the Telangana State Hotel Association, said, "Since yesterday (Monday), we have started facing extreme difficulty with commercial gas supply. Small hotels have one or two days of stock left. After two days, 90 per cent of the food industry in Hyderabad will shut down. We have not planned for this kind of crisis and we have no idea how long this will last," he said.

The warning comes as thousands of restaurants, tiffin centres, messes and small food outlets continue to depend almost entirely on commercial LPG for day-to-day cooking operations.

Massive Employment Risk If Food Industry Comes To A Halt

Industry leaders have also underlined the wider economic fallout if the LPG shortage continues. According to the TSHA, the hotel and restaurant sector is among the country's largest employers, second only to the Railways.

Murthy pointed out that in a city like Hyderabad, even a medium-sized hotel can support around 500 livelihoods directly and indirectly. This includes chefs, kitchen staff, waiters, delivery workers, suppliers, cleaners and transport-linked workers. If a large-scale shutdown takes place, lakhs of workers could face immediate income disruption.

The industry fears that the fallout will not remain limited to restaurant owners alone, but will quickly ripple through the broader urban economy that depends on the food services ecosystem.

Tourism Season And Student Food Access Under Threat

The timing of the LPG crisis has made the situation even more serious. Hyderabad and other parts of Telangana were preparing for a busy summer period, with schools and competitive examinations nearing completion and seasonal travel expected to pick up.

Industry stakeholders say a widespread shutdown of food outlets during this period could damage Telangana's tourism image, especially at a time when visitors are expected to increase.

At the same time, students living in PG accommodations and hostels are likely to be among the worst affected. Many of them depend entirely on nearby hotels, messes and budget eateries for their daily meals. With a prolonged supply disruption, these students could face serious difficulty in accessing regular food for the coming days.

Industry Seeks Emergency Relief From State And Centre

The Telangana State Hotel Association has appealed to both the State and Central governments for urgent intervention to prevent a complete collapse of the food service sector.

The association has requested that at least 50 per cent of the normal commercial LPG quota be restored immediately so that hotels and restaurants can continue operating in a limited capacity.

Making the appeal, Murthy said, "If we are given even 50 per cent of our requirement, we will try to manage the rest with temporary arrangements like electricity and firewood just to keep our workers fed and the industry alive," he said.

The industry says even partial restoration of supply could help businesses stay afloat for now and avoid a total shutdown that would hit workers, tourists, students and the wider city economy all at once.

If the supply crisis continues unresolved over the next two days, Hyderabad could witness one of the most serious disruptions to its food and hospitality sector in recent years, with the effects likely to be felt far beyond restaurant kitchens.