4 min readNew DelhiMar 13, 2026 06:15 PM IST
Bharat Rashtra Samithi (BRS) working president K T Rama Rao has urged Union Petroleum and Natural Gas Minister Hardeep Singh Puri to address the acute shortage of commercial LPG cylinders, warning that the crisis is pushing hotels, eateries, and hostels towards shutdown.
In a detailed letter dated March 12 (Thursday), Rao said the shortage of commercial LPG cylinders had created a crisis of “significant proportions” affecting businesses and millions of citizens who depend on the food service sector. While acknowledging the Union government’s decision to prioritise domestic LPG supply under the Essential Commodities Act, he said the move had severely impacted the commercial food sector and required urgent corrective measures.
“The human cost of this decision on the commercial food sector is now severe and immediate,” Rao wrote, calling for coordinated action by the Petroleum Ministry and a committee of oil marketing company executives constituted to examine the shortage.
Citing warnings from the Telangana State Hotel Association, the BRS leader said nearly 90 per cent of hotels and eateries in Hyderabad and across Telangana could be forced to shut within 48 hours if commercial LPG supplies are not restored. Many establishments were already operating with only a fraction of their required cylinders, he added.
Rao also flagged the impact on paying guest (PG) hostels across Hyderabad’s IT corridor, where lakhs of working professionals and students depend on shared accommodation for daily meals. Several hostels had begun cutting meals entirely due to the shortage, he said, adding that the crisis was affecting “millions of citizens, workers, students and families.”
The letter proposes a series of recommendations, divided into operational suggestions for the government-appointed committee and policy interventions requiring direct action from the ministry.
Among the key operational proposals, Rao urged the committee to introduce a tiered classification system for commercial establishments so that smaller eateries and street vendors receive priority over large national food chains. “A roadside tea stall owner with no savings is being treated the same as a large chain with hundreds of outlets,” he wrote, calling the current uniform categorisation inequitable.
Story continues below this ad
He also recommended that oil marketing companies create a public real-time dashboard showing expected commercial LPG supply by district or city clusters. According to him, the absence of reliable information had triggered panic bookings and hoarding by businesses unsure about when their next cylinder would arrive.
‘Freeze commercial LPG prices’
On policy measures, Rao called on the ministry to freeze commercial LPG prices during the crisis, noting that prices had risen even as supply collapsed. If cost pressures on oil marketing companies were significant, the government should consider absorbing part of the burden rather than passing it on to small businesses, he said.
The BRS leader also urged the government to launch strict enforcement against black marketing, alleging that domestic LPG cylinders were already being diverted and sold commercially at nearly three times the official price in several cities.
Among other measures, Rao recommended issuing a temporary work-from-home advisory for IT and services sector companies to reduce demand from corporate cafeterias, creating a protected LPG allocation for PG hostels and student accommodation, and declaring gas-based crematoriums and last rites facilities as essential services to ensure uninterrupted fuel supply.
Story continues below this ad
He further asked the Centre to prepare an emergency relief mechanism for daily wage workers in the hospitality sector who may lose their livelihood if restaurants shut down due to the LPG shortage.
