90% of Hyderabad eateries likely to shut down in next 48 hours amid LPG crisis
Nearly 90 per cent of hotels and restaurants in Hyderabad and across Telangana may shut within two days as a severe shortage of commercial LPG hits supplies. Industry bodies warn small eateries with limited fuel reserves will be the first to halt operations
Published Date - 10 March 2026, 08:53 PM
Hyderabad: Nearly 90 per cent of hotels and restaurants in Hyderabad and across Telangana will be forced to shut within the next two days, as the unprecedented severe shortage of commercial LPG threatens to bring the city’s massive food industry to a grinding halt.
Speaking about the dire situation, S Ram Murthy, Treasurer, Telangana State Hotel Association, said while large establishments have some reserves, the thousands of small and medium-sized hotels that power the city’s daily food needs typically maintain only 24 to 48 hours of fuel stock.
“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 senior office-bearer of TSHA said that the hotel industry is the second-largest employer in the country after the Railways. In a city like Hyderabad, a single medium-sized hotel can provide direct or indirect livelihood to nearly 500 people. A total industry collapse would lead to massive, immediate unemployment for lakhs of workers, ranging from chefs and servers to delivery personnel and suppliers, he said.
The timing of the crisis is particularly sensitive. With schools and competitive exams concluding, the city was bracing for its peak summer tourism season. Industry experts warn that the lack of food services will severely dent Telangana’s tourism image. Furthermore, students residing in PGs and hostels, who rely entirely on local eateries for their daily meals, are facing a week of extreme food insecurity.
The TSHA has made a plea to both the State and Central governments for immediate relief. They are requesting at least a 50 per cent supply of the regular quota to prevent a total blackout.
“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.