Restaurant India News: Maharashtra Increases PNG Supply to Restaurants by 20 Percent

The Maharashtra government has increased the supply of piped natural gas (PNG) to commercial establishments by 20 percent, providing operational relief to restaurants and eateries impacted by recent supply disruptions.

Chhagan Bhujbal, state Food and Civil Supplies Minister, confirmed that the decision was taken to ease distribution for businesses dependent on commercial cooking gas. “From March 23, until further notice, commercial PNG supply has been increased by 20 per cent,” he said.

Following this revision, total PNG allocation to the commercial segment will rise to 50 percent. The hospitality sector has faced significant pressure in recent weeks due to disruptions in gas supply linked to geopolitical tensions. The conflict involving the US-Israel and Iran has resulted in a blockade of the Strait of Hormuz, a key route for Gulf energy shipments, impacting availability of commercial fuel.

Restaurants and foodservice operators reported operational challenges, with several establishments forced to suspend services due to shortages of cooking gas. Industry stakeholders had raised concerns over continued supply constraints and their impact on business continuity.

Bhujbal noted that PNG allocation to commercial users had been gradually increased since the crisis began, initially rising to 20 percent, followed by a 10 percent increase, and now an additional 20 percent.

The hotel and restaurant industry had sought intervention from the state government after the Centre prioritised domestic consumption in its advisory. Bhujbal had earlier stated, “If gas supply to hotels is stopped completely, many establishments may have to shut down. Switching to alternatives such as kerosene would require significant changes in infrastructure and could pose operational risks.”

According to the minister, industry representatives had requested that commercial supply not be halted entirely and suggested partial reductions instead of a complete cut. The latest move is expected to stabilise operations across the hospitality sector in Maharashtra, where access to consistent fuel supply remains critical for daily business continuity.