Mar 19, 2026 Languages : English | ಕನ್ನಡ

Black Market LPG Prices Hit ₹4,000 as 30% of Bengaluru Hotels Face Shutdown

Bengaluru is facing a growing commercial LPG supply crisis, with reports suggesting that nearly 30% of hotels in the city may remain closed today due to the severe shortage of cooking gas. The situation has worsened as commercial LPG cylinders are allegedly being sold in the black market for as high as ₹4,000, far above the official price.

Black Market LPG Prices Hit ₹4,000 as 30% of Bengaluru Hotels Face Shutdown
Black Market LPG Prices Hit ₹4,000 as 30% of Bengaluru Hotels Face Shutdown

Hotel owners across Bengaluru say the shortage of commercial gas cylinders has made it difficult for them to continue normal operations. Many restaurants and small eateries that rely heavily on LPG for cooking have already exhausted their available stock. Without immediate resupply, several establishments have been forced to temporarily shut down or reduce their services.

Industry representatives have expressed frustration over the irregular supply of commercial LPG cylinders. According to hotel associations, suppliers failed to deliver sufficient cylinders over the past few days, leaving many businesses struggling to meet daily demand. The shortage has also pushed some operators to purchase cylinders from the illegal black market at extremely inflated prices.

Normally, a commercial LPG cylinder costs significantly less, but due to the sudden scarcity, some traders are reportedly selling them for up to ₹4,000. Hotel owners say such high prices are unsustainable and could severely impact the hospitality sector if the crisis continues.

The problem has affected not only restaurants and hotels but also catering services, paying guest accommodations, and event halls, which depend on commercial gas cylinders for large-scale cooking. Some establishments have even switched to traditional wood-fired stoves as an emergency alternative to continue serving customers.

The shortage is believed to be linked to disruptions in global LPG supply caused by the ongoing Middle East conflict. India imports a large portion of its LPG requirements from Gulf countries, and the ongoing geopolitical tensions have reportedly slowed shipments passing through the Strait of Hormuz, a key global energy route.

Hotel industry leaders are urging the government and gas distribution agencies to restore regular supply immediately and take strict action against black market sales. They warn that if the shortage continues, more hotels and restaurants across the city may be forced to close temporarily.

Authorities are monitoring the situation closely, and industry groups hope that emergency measures will help stabilize the LPG supply soon. Until then, Bengaluru’s hospitality sector remains under pressure as businesses struggle to cope with rising costs and limited fuel availability.