The hospitality sector in Bengaluru has approached the Karnataka High Court after an alleged disruption in the supply of commercial LPG cylinders to hotels and restaurants across the city. The petition, filed by the Bangalore Hotels Association and several hotel owners, claims that the sudden halt in supply threatens business operations and employment in the sector.
The association has sought urgent directions to ensure uninterrupted LPG supply to hospitality establishments, arguing that the fuel is essential for daily operations.
Background of the Case
According to the petition, geopolitical tensions in the Middle East have disrupted global energy supplies, affecting the availability of commercial LPG in India. This development has had a ripple effect in Karnataka, particularly in Bengaluru, where restaurants and hotels depend heavily on LPG for cooking and food preparation.
The petition states that on March 4, 2026, LPG distributors across the state informed stakeholders that supply of 19 kg commercial cylinders would be affected due to the emerging geopolitical situation.
Shortly thereafter, the Central Government issued an order under the Essential Commodities Act, 1955, directing oil refining companies to divert certain petroleum products for priority purposes.
Subsequently, LPG distributors reportedly suspended supply of commercial cylinders to non-essential commercial establishments, including hotels and restaurants, in order to prioritise domestic consumers.
The petitioners argue that these developments effectively left hospitality businesses without fuel to operate their kitchens.
The Bangalore Hotels Association told the court that the disruption in LPG supply could severely affect the city’s hospitality industry, which includes around 40,000 hotels and restaurants in Bengaluru alone.
The association claimed that nearly six lakh workers depend on the sector for their livelihood. If the fuel shortage continues, several establishments may be forced to shut down temporarily.
“The abrupt stoppage of LPG supply has paralysed the functioning of hotels and restaurants and makes it impossible for them to carry on their trade,” the petition states.
The petition further contends that the government’s move indirectly restricts the fundamental right to carry on trade or business under Article 19(1)(g) of the Constitution, since hotels cannot operate without fuel.
The association also pointed out that hotels are a key link in the city’s food supply chain. Closure of restaurants could disrupt demand for perishables such as vegetables, meat, eggs and dairy products sourced daily from local suppliers.
The petition refers to a policy decision taken by the Karnataka government to regulate the distribution of commercial LPG cylinders in view of the shortage.
Under the policy framework, only a limited number of cylinders were proposed to be released daily across the state, reportedly far below normal supply levels.
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The petitioners claim that the decision has created severe shortages for commercial establishments and disrupted their operations.
The association has filed the writ petition under Article 226 of the Constitution, seeking directions to the Union of India, the State of Karnataka, and oil marketing companies including Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.
The petition specifically asks the High Court to:
- Direct authorities to resume uninterrupted supply of commercial LPG cylinders to hotels and restaurants in Bengaluru and
- Ensure continuity of supply while the petition is pending.
The petitioners have also sought interim relief to prevent disruption to hospitality businesses until the matter is finally decided.
The petition has been placed before the Karnataka High Court seeking urgent intervention and directions to restore uninterrupted LPG supply to hotels and restaurants in Bengaluru.
Case Title: Bangalore Hotels Association & Others v. Union of India & Others
