LPG e-KYC: Everything you need to know and how to do it clarified that LPG e-KYC is mandatory only for unauthenticated users, not all consumers, amid confusion over reports suggesting a fresh directive.
The Ministry of Petroleum and Natural Gas has reiterated that biometric Aadhaar authentication, or e-KYC, is required only for LPG consumers who have not yet completed the process, clarifying that this is not a new directive. Explained: What is driving India’s LPG shortage and how hotels and restaurants are coping
LPG supply disruptions in India, due to West Asia tensions, impact hotels and restaurants in cities like Mumbai and Bengaluru. Industry leaders warn of potential shutdowns.
Supply disruptions in liquefied petroleum gas (LPG) are beginning to affect hotels and restaurants across several cities in India, forcing businesses to modify menus, explore alternative cooking methods and carefully plan kitchen operations. Restaurants add LPG surcharge to bills as cooking gas supply tightens restaurants, including Hotel Annavaasal and Krishna Vaibhava, are adding temporary LPG surcharges due to rising fuel costs and supply disruptions from the Israel-Iran conflict. Restaurants in several parts of India have begun adding temporary LPG surcharge fees to customer bills as tightening supplies of commercial liquefied petroleum gas force operators to pass on rising fuel costs.
A receipt from Hotel Annavaasal reviewed by Moneycontrol showed a ₹15 charge labelled “LPG revision” added to a parcel order of sambar rice priced at ₹70, raising the total bill to ₹85. In another instance shared online, a restaurant bill from Bengaluru included a ₹30 “gas supply issue” charge alongside the food order.
Some restaurants have instead opted to revise menu prices rather than introduce separate surcharges. Restaurants turn frugal with cold buffets, staff food cuts as LPG shortage bites; NRAI seeks govt support fears of cooking gas shortages in India due to the West Asia conflict have led hotels and restaurants to switch to electric appliances and trim menus.
As fears of a prolonged disruption in cooking gas supplies ripple across India due to the conflict in West Asia, hotels and restaurants are rapidly rearranging their kitchen’s cooking appliances and redesigning their menus.
In resort towns, urban eateries, and neighbourhood restaurants, chefs are swapping flames for electricity, trimming menus, and rationing gas cylinders as the war near the Strait of Hormuz threatens the steady flow of liquefied petroleum gas (LPG), a fuel on which India’s food industry heavily relies.
“When I first saw the news, I immediately procured five commercial induction stoves,” said the owner of a resort in Rishikesh, who requested anonymity while discussing emergency preparations.
Across Delhi-NCR and Uttarakhand, restaurant operators said the adjustments have been swift and sometimes drastic. Kitchens that once relied almost entirely on gas are experimenting with induction cooktops, electric griddles, and even charcoal-fired setups.
Several owners of restaurants, resorts, and hotels told Storyboard18 they have begun calculating daily LPG usage, conserving cylinders for essential cooking and shifting other preparations to electric alternatives.
Commercial induction cooktops, electric griddles, and even charcoal-fired stoves are making their way into kitchens that traditionally relied almost entirely on gas.
Owners are also shrinking their menus. A resort owner in Rishikesh said, “If my menu has 100 dishes, we might reduce it to about 70, if the situation worsens.”
Another owner said, “Anything that requires long cooking or multiple burners is being reconsidered”.
Daily buffets are being redesigned to include more cold items that require little or no cooking. Staff meals, which often involve elaborate preparations, are also being simplified, with many hotels now serving basic roti and vegetables. The operators stated that these measures have helped them reduce LPG usage by nearly half.
However, for some eateries, the adjustments have not been enough. A few of the restaurants have temporarily shut down operations due to the lack of LPG gas cylinders.
Among them are Boheme in Karol Bagh and Tadka Rani in South Delhi, which have stopped services until supply stabilises.
“We are shutting down because the gas has finished,” said Gagandeep Singh Sapra, the owner of Tadka Rani. Sapra added that the black marketeers are asking for over Rs 5,000 for a commercial cylinder.
Analysts have warned that the burden of rising gas prices and supply shortages is likely to fall hardest on small restaurants and street vendors.
Santosh Sreedhar, Partner, Avalon Consulting said many small food businesses may struggle to survive if the situation persists.
“Street vendors and small operators are the most vulnerable because they cannot afford LPG at inflated prices,” he said. “Delivery platforms could help by designing menus that are less dependent on LPG and assisting partners in sourcing cylinders”.
The government has already begun taking regulatory steps to manage the situation. Invoking powers under the Essential Commodities Act, the Centre issued the Natural Gas (Supply Regulation) Order 2026, aimed at regulating the production, allocation, and distribution of natural gas during the supply crunch.
Under the new order, priority allocation has been given to domestic piped natural gas (PNG), compressed natural gas (CNG) for transport , LPG production, and essential pipeline operations.
However, restaurants are not currently part of the priority allocation list. Henceforth, the National Restaurant Association of India (NRAI) has urged the government to reconsider the allocation priorities.
“The situation on the ground is becoming increasingly challenging for restaurants across the country,” said Ankur Sharma, a management committee member at NRAI.
“Our industry is nearly 95% dependent on LPG for daily operations, and many restaurant partners are already streamlining menus and taking austerity measures just to keep their kitchens running.”
“We understand that the government has identified priority sectors for LPG allocation, and currently the restaurant industry is not part of that list,” Sharma said. “However, our sector is equally essential in many ways. We would request that some allocation be considered for commercial LPG and that there is greater clarity in communication so the industry can prepare and sustain operations.”
Supply disruption linked to Middle East tensions
The price adjustments come as restaurant kitchens across several Indian cities face disruptions in the supply of commercial LPG cylinders. West Asia conflict keeps Indian FMCG brands on watch; industry executives see limited immediate impact executives told Storyboard18 that if tensions in West Asia remained contained, Indian FMCG firms could see a revenue impact of roughly 1-1.25% in Q4 FY2026
The sound of air raid sirens, missile interceptions, and distant explosions has disrupted the rhythm of daily life across West Asia in recent days, unsettling a region that has long been a crucial commercial hub for global trade.
For Indian consumer goods companies with strong ties to the Gulf Cooperation Council (GCC), a bloc of six countries in West Asia region, the escalation of conflict has led to a new layer of uncertainty.
Mohit Malhotra, the Whole-Time Director and Chief Executive Officer of Dabur India Ltd, one of the country’s largest fast-moving consumer goods (FMCG) companies, found himself in the midst of the unfolding tensions during a business trip to Dubai earlier this month.
“The situation is precarious,” Malhotra said, describing a city that has been punctuated by security alerts and disruptions. “We can hear frequent disturbances, and there are disruptions in container movement and logistics, too.”
The GCC bloc, whose combined economy is valued at $466.2 billion, is an important overseas market for several Indian FMCG brands, particularly catering to the large Indian diaspora in the region.
Among them, Dabur has one of the deepest footprints. Industry executives estimate that between 10% and 20% of the company’s business is tied to the Gulf region. While the exposure for companies like Marico Ltd and Godrej Consumer Products is lower, with roughly 5-10% of revenue linked to GCC markets.
So far, executives told Storyboard18 that the commercial impact appeared to be limited. India has remained the primary market for most of the FMCG brands, and analysts expect only a modest effect on near-term earnings.
The experts estimated that if tensions remained contained, Indian FMCG firms could see a revenue impact of roughly 1-1.25% in the fourth quarter of the current fiscal year 2026.
“India FMCG companies largely cater to the Indian diaspora in the Gulf,” said one industry executive familiar with the market. “Consumers there tend to prefer European and Japanese brands overall, but Indian products have built a niche because of cultural overlap, for instance, habits like hair oiling”.
The overlapping of such habits has helped brands like Marico’s Parachute hair oil and Dabur’s Ayurvedic products maintain a steady demand across the region.
However, the industry executives have anticipated disruptions in the supply chains if the conflict deepens further. “Companies that rely on imports of dates, dry fruits, and certain raw materials from the region may face headwinds if logistics routes or shipping channels remain affected,” the expert said.
One analyst said the prolonged conflict could also complicate sourcing for companies that depend on the Gulf for key inputs.
During the third quarter of FY26, Dabur’s Dubai-based subsidiary contributed 12.5% of revenue, clocking year-on-year growth of 6%. Previously, the company had stated that West Asia accounted for about 26% of its international business in fiscal year 2025.
Godrej Consumer Products also reported a strong momentum across this market. In Q3 FY26, the company said Africa, the USA, and the Middle East (or West Asia) together generated Rs 921 crore in sales, a 19% YoY rise.
Marico, whose Parachute brand has a strong presence in the Gulf, has also been looking to deepen its regional footprint. The company’s CEO, Saugata Gupta, recently said he aims to build leadership in the digital beauty and grooming segments in the United Arab Emirates (UAE) or the Kingdom of Saudi Arabia (KSA).
Storyboard18 has reached out to Godrej Consumer Products and Marico for comment. The story will be updated if they respond.
Meanwhile, investors have reacted cautiously to the unfolding situation. Over the past five days, shares of Dabur have fallen 3.6%, closing at Rs 471 apiece on the BSE on March 11. Marico shares slipped 1.4% to Rs 760 apiece during the same period, while Godrej Consumer declined 4.32%, dropping from Rs 1,134 apiece on March 5 to Rs 1,085 apiece on March 11. Moneycontrol reported earlier that restaurants in cities including Bengaluru and Mumbai had begun receiving only a fraction of their usual LPG deliveries starting March 9. The reduced supply has forced kitchens to scramble for refills and rethink daily operations.
The disruption has also pushed up the cost of commercial LPG. Industry participants informed Moneycontrol that the price of a 19-kg commercial cylinder has risen to around ₹2,100 to ₹2,300, compared with roughly ₹1,650 a month earlier.
Restaurants urged to conserve fuela
Restaurant industry groups have warned that if the supply disruptions continue, operators may have to revise menus, cut back on fuel-intensive dishes or pass on higher operating costs to customers.
Earlier this week, the National Restaurant Association of India issued an advisory urging member restaurants to conserve gas usage, rationalise menus and explore electric cooking alternatives to manage the shortage.
Meanwhile, the Ministry of Petroleum and Natural Gas stated that LPG supplies are currently being prioritised for household consumers and essential sectors such as hospitals and educational institutions amid the ongoing supply constraints.
Restaurant operators noted that kitchens typically operate on tight fuel cycles with limited capacity to store cylinders. As a result, even short disruptions in LPG supply can quickly affect kitchen operations and increasingly lead to additional charges appearing on customer bills. According to traders, daily firewood consumption has increased from around 100 kg to between 200 and 250 kg.
In Hyderabad, hotel representatives warned that a prolonged shortage could significantly disrupt operations.
Ashok Reddy, president of the Hyderabad Hotels Association, stated that hotel owners fear a situation similar to the disruptions experienced during the COVID-19 pandemic and are concerned about sustaining staff if operations are forced to shut.
Small establishments in the city are attempting to manage operations using induction stoves and firewood, although such alternatives are not feasible for many restaurants operating in multi-storey buildings.
Operational changes in large hotels
Large hotel operators say they are adjusting kitchen operations while continuing to serve guests.
Saurabh Gahoi, Senior Vice President – India at Ramee Group of Hotels, stated that the shortage has prompted the company to adapt kitchen operations while ensuring the guest experience remains unaffected.
He stated that menus have been temporarily adjusted to prioritise dishes requiring less gas-intensive cooking and that induction cooking is being used more extensively.
Hotels are also increasing the use of electric appliances wherever possible.
Anish Srivastava, General Manager – Operations at Sayaji Hotels, stated that the LPG shortage is testing the industry’s resilience, adding that hotels are streamlining menus, shifting to electric cooking options and working with industry peers and authorities to secure urgent supply relief.
Vikram Puri, Managing Director of Archer Hospitality, which operates The Astor Goa, The Astor Kolkata and DoubleTree by Hilton Agra, stated that LPG and piped natural gas remain key energy sources supporting day-to-day kitchen operations across restaurants, banquets and in-room dining services.
Puri stated that the company has implemented operational adjustments and contingency planning across its properties, enabling a reduction in LPG consumption while maintaining food quality and overall dining experience. In a post on X, it said the requirement applies only to “unauthenticated LPG customers” and added, “THIS IS NOT A FRESH DIRECTION”.
It further noted that non-Pradhan Mantri Ujjwala Yojana (PMUY) customers who have already completed e-KYC are not required to repeat the process.
The Aadhaar-based e-KYC system links LPG connections to verified identities using biometric authentication, including face recognition through supported mobile applications. The government said the move is aimed at improving beneficiary identification, reducing duplication, and ensuring proper delivery of LPG services.
Consumers can complete the process either online or offline.
How to complete e-KYC online
Consumers can complete the process from home using mobile apps. The steps are:
- Download your LPG provider’s app (IndianOil ONE, Hello BPCL, or HP Pay)
- Install the Aadhaar FaceRD app
- Log in using your registered mobile number
- Select the “Aadhaar e-KYC” or “Link Aadhaar” option
- Provide consent and enter Aadhaar details
- Complete face authentication using the app
- Submit the request
How to complete e-KYC offline
Consumers can also visit their LPG distributor:
- Carry Aadhaar card and registered mobile number
- Request biometric authentication
- Provide fingerprint or face authentication
- Complete verification and collect confirmation
The ministry clarified that the requirement is part of an ongoing verification exercise and applies only to consumers who have not completed Aadhaar authentication so far.
For PMUY beneficiaries, e-KYC updates are required once every financial year, specifically to receive targeted Direct Benefit Transfer (DBT) subsidies after seven refills.
According to the ministry, the process helps ensure transparency, identify genuine beneficiaries, eliminate duplicate or “ghost” connections, and prevent diversion of LPG cylinders.
Consumers who do not complete e-KYC may face disruptions in LPG services or delays in booking refills. The ministry has advised users to complete the process at the earliest to avoid inconvenience. Restaurant bodies raise shutdown alarm amid LPG shortage, delivery platforms brace for impact
Subramanya Holla, President of the Bengaluru Hotel Association, said most restaurants have only two to three days of LPG stock left, NRAI’s Pranav Rungta warned eateries may shut if commercial cylinders aren’t refilled.
The ripple effects of the West Asia conflict are now reaching India’s food ecosystem. A shortage of commercial LPG cylinders is disrupting restaurant kitchens across several Indian cities and raising fears of shutdowns in the hospitality sector.
Hotel and restaurant associations in cities including Bengaluru, Mumbai and Chennai have raised concerns about the availability of cooking gas following disruptions in global energy supply linked to the ongoing conflict in West Asia.
Industry representatives said the shortage has already begun disrupting restaurant operations, as most establishments rely heavily on LPG for cooking.
Impact may spread from farmers to food delivery
Subramanya Holla, President of the Bengaluru Hotel Association told Storyboard18 that the situation in Bengaluru has worsened after oil companies reportedly stopped supplying commercial cylinders.
“There is a sudden issue. The IOC has issued letters saying they are not giving us gas. There is a huge scarcity,” Holla said.
According to him, most establishments currently have only a few days of stock left. “Wherever you look, everybody has got two to three days’ stock. I don’t know what will happen then,” he said, adding that the crisis could trigger a sharp drop in sales and revenue across the sector.
Holla warned that the impact could spread beyond restaurants to the wider food supply ecosystem. “Farmers will be affected as vegetable sales will go down, meat consumption will go down and there will be multiple effects,” he said.
It could also affect food delivery platforms such as Zomato and Swiggy, he said.
He also said that shifting to electric cooking is not a practical solution for many eateries. “Some hotels can move to electric cooking, but most cannot because they operate in rented buildings with limited power capacity,” he said.
Holla compared the potential impact of the shortage to the pandemic-era disruptions.“This is like a Covid situation indirectly. Prices will go up and businesses will struggle to manage labour and costs,” he said.
Restaurants heavily dependent on LPG
Speaking to Storyboard18, Pranav M Rungta, Vice President of the National Restaurant Association of India (NRAI), said the restaurant industry remains highly dependent on LPG for its daily operations.
“India’s dependence on LPG is significant, and about 75% of restaurants still rely on LPG because PNG penetration is only around 20–25%,” Rungta said.
He said several cities are already facing supply disruptions.“Bengaluru, Chennai, Mumbai, Pune and Jaipur are badly affected. Delhi still has some supply, but disruptions may reach there in the coming days,” he said.
According to Rungta, the shortage appears to stem partly from confusion over government directives prioritising domestic LPG cylinders over commercial supply. “Restaurants require 19-kg commercial cylinders, which are not being refilled right now, which is why the shortage is happening,” he said.
Risk of restaurant shutdowns
Industry representatives warned that restaurants may have to shut down if the supply situation does not improve soon.
“We are almost 95% dependent on gas. If LPG supply is not restored in the next couple of days, restaurants will start shutting down,” Rungta said. He added that the shortage could also disrupt broader food supply chains.
“Milk and dairy production uses boilers that run on LPG or PNG. That supply chain could also start getting affected,” he said. Rungta said the slowdown could eventually affect food delivery platforms and restaurant revenues.
“Spends will go down and supply will be restricted. That will impact both revenues and operations,” he said.
Rungta said restaurants should conserve LPG and shift some non-essential cooking to electric appliances where possible until supply stabilises.
Government steps to address supply
Amid the disruption, the Union government has invoked the Essential Commodities Act to ensure domestic cooking gas supply and has directed refineries to increase LPG production.
The oil ministry has also formed a committee comprising executives from oil marketing companies to review LPG supply requests from sectors such as hotels, restaurants and other industries.
Authorities have instructed refineries to divert additional hydrocarbon streams to boost LPG output, while prioritising supply for household cooking gas.
The government has also issued the Natural Gas (Supply Regulation) Order 2026 to regulate the allocation of natural gas across sectors, including domestic PNG supply, CNG for transport, LPG production and fertiliser plants.
Industry bodies, however, said clarity on commercial LPG supply will be critical to prevent widespread disruptions in the hospitality sector.
