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LPG shortage begins to hit AP

Industries halt production, eateries scale down cooking operations

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LPG shortage begins to hit AP
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17 March 2026 8:14 AM IST

Concernsare mounting among industrial users, hotels and hostels in Andhra Pradesh as a shortage of commercial LPG begins to disrupt normal operations. Despite authorities denying any severe shortfall, several establishments say they are already feeling the impact, which they attribute to supply disruptions linked to the ongoing conflict in the Middle East.

Paying guest accommodations and hostels have started curtailing cooking hours, while some small eateries have temporarily stopped operations or switched to electric stoves despite the higher operational costs.

Industrial units too are facing difficulties. Rashtriya Ispat Nigam Limited (RINL), the corporate entity of the Visakhapatnam Steel Plant, requires around 13 tonnes of LPG daily for its operations and is reportedly facing supply constraints. Production at Wadi Surgicals Pvt Ltd, a manufacturer of nitrile examination gloves located at the Andhra Pradesh MedTech Zone (AMTZ), has already come to a halt due to the shortage. The company has urged authorities to prioritise LPG supply to essential industries.

The Hotels and Restaurant Association of Andhra Pradesh has expressed concern over the situation. Its representative, M V Pavan Kartheek, said hotels, restaurants and catering establishments rely heavily on commercial LPG and the decision to supply only 20 per cent of normal requirements could significantly affect their operations.

At an emergency meeting, the association passed a resolution highlighting that the hospitality sector supports thousands of workers including chefs, kitchen staff, service personnel, suppliers and transport operators across the State.

The shortage is already being felt at major tourist destinations such as Tirupati, Visakhapatnam, Vijayawada, Araku, Srisailam and Konaseema. Hoteliers fear that if the disruption worsens, tourists could face higher food prices or limited services.

Meanwhile, a Group of Ministers led by Finance Minister Payyavula Keshav and Agriculture Minister Kinjarapu Atchan Naidu has appealed to the public not to resort to panic booking of LPG cylinders. Officials said emergency LPG reserves stored in an underground cavern near Hindustan Shipyard Limited in Visakhapatnam could be tapped if the crisis deepens.

LPG shortage Andhra Pradesh commercial LPG Middle East conflict hospitality sector industries tourism impact Visakhapatnam Steel Plant AMTZ restaurants hotels hostels supply disruption energy crisis India economy 
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