The market reaction follows a letter from the Federation of Hotel and Restaurant Associations of India (FHRAI) to Petroleum Minister Hardeep Singh Puri highlighting widespread disruptions in commercial cooking gas supplies.
Shares of hotel and restaurant companies were trading mixed on BSE and NSE on Tuesday morning, as news of disruptions in commercial cooking gas supply rattled the sector.
Among hotel stocks, Indian Hotels Company was trading at ₹616.40, up 0.75 per cent, while EIH Limited gained 0.38 per cent to ₹316.15 and Ventive Hospitality rose 0.48 per cent to ₹685.55. Westlife Foodworld was the standout gainer among restaurant stocks, up 1.52 per cent at ₹476.20. However, most other counters were in the red. Jubilant Foodworks fell 1.28 per cent to ₹482.40, Motel Hotels dropped 0.49 per cent to ₹731.20, and Mahindra Holidays declined 0.68 per cent to ₹269.10. Food delivery platforms Eternal Limited (Zomato) and Swiggy slipped 0.38 per cent and 0.22 per cent to ₹228.69 and ₹300.60, respectively.
The selling pressure follows the Federation of Hotel and Restaurant Associations of India (FHRAI) writing to Petroleum Minister Hardeep Singh Puri, flagging “widespread disruption at the ground level” in commercial LPG supplies. Several distributors have reportedly been withholding cylinders, citing a government order dated March 5.
Responding late Monday night, the Ministry of Petroleum and Natural Gas said it has constituted a three-member committee — comprising Executive Director-level officers from Indian Oil, BPCL,and HPCL — to review LPG supply to restaurants, hotels, and other sectors.
The ministry said it has prioritized domestic household LPG supply and introduced a 25-day inter-booking period to curb hoarding. Non-domestic LPG supply from imports is channeled first to hospitals and educational institutions.
The government has also directed all domestic refineries and petrochemical complexes to maximize production of C3 and C4 streams — including propane and butane — exclusively for LPG output. The move is linked to supply concerns arising from potential disruptions near the Strait of Hormuz.
Markets will watch for further government communication as the session progresses.
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Published on March 10, 2026