Food business operators in Hyderabad and across Telangana, represented by the Telangana State Hotels Association, have appealed to Prime Minister Narendra Modi for urgent intervention over the steep rise in commercial LPG cylinder prices.

The representation highlights the severe financial burden faced by tiffin centres, tea stalls, bakeries, roadside eateries, and small hotels that depend on commercial cooking gas for daily operations.

According to the representation, many operators have reported difficulty in sustaining day-to-day operations, even as market conditions prevent them from proportionately raising food prices. Many establishments serve middle-class families, students, hostel residents, labourers, and daily wage earners. They expressed fear that continued price hikes could force several small businesses to shut down.

The concerns are not only commercial in nature but also directly affect thousands of livelihoods, food affordability for economically weaker sections, and urban employment in the informal sector, they said.

The association urged an immediate review and rationalisation of commercial LPG cylinder prices to protect small businesses and consumers.

With restrictions placed on liquefied petroleum gas (LPG) supplies for both domestic and commercial consumers from Thursday night (March 5, 2026), the public has been advised to use the fuel in a wise manner.

An oil industry source said single bottle domestic consumers will be allowed to make fresh bookings only after 21 days from the date of last booking and those with double bottles can book only after 30 days. “Consumers can book only using their registered mobile numbers and delivery will be done only if the OTP is given. These are steps to ensure the fuel is used judiciously,” said a distributor.

Sources said commercial consumers using 19 kg cylinders were told they will not be given supplies. But after talks, existing customers were given a portion of their requirements. “Private gas companies do not have stocks. We hear supplies to industrial consumers were being stopped,” a source said.

Hoteliers in Tamil Nadu say this could cripple their business. They fear distributors may cite shortages to divert supplies to the black market or increase prices, raising operating costs for restaurants and hotels.

“They have slowed the supply of LPG for commercial purposes. From next week, we don’t know how we will run our business. Distributors say they don’t have any stock,” said D. Sreenivasan, owner of the Sree Annapoorna Sree Gowrishankar Hotels, Coimbatore and Honorary President of Tamil Nadu Hotel Association.

“Many who are working and living in hostels depend on restaurants for their day-to-day food. Even the hospital sector depends on us for food for patients,” added Jegan Damodarasamy, CEO of Sree Annapoorna Sree Gowrishankar Hotels.

M. Ravi, president of the Chennai Hotels Association and chairman of Vasanta Bhavan Hotels India Pvt. Ltd., said: “We have got a communication that they won’t be able to supply LPG cylinders. They said they will give us until stock lasts. We consume 3,000 cylinders a month (33 kg) – This is only for the Chennai outlets (we have around 25 outlets). If we don’t get gas for a day, the industry will come to a standstill, you can’t cook. This will affect tourism too. Government has to ensure there is proper supply.”