Gas Crisis Hits Bengaluru Breweries; Pubs Slash Production During Peak Season

Bengaluru’s microbreweries are cutting production as an LPG shortage hits the city’s booming craft beer scene. The supply crunch, linked to shipping disruptions near the Strait of Hormuz, is affecting pubs during the busy summer months and raising concerns across India’s commercial kitchens and distilleries.

The disruption begins at sea. Around 90 percent of India’s LPG imports move through the Strait of Hormuz, and India relies on imports for about 60 percent of total LPG use. The closure of that route squeezes supplies nationwide, leaving breweries and restaurants scrambling for alternatives.

LPG shortage and government response across India

The government responds on multiple fronts. On 8 March, refineries are instructed to raise LPG output, with officials saying domestic production is rising by roughly 25 to 28 percent. The petroleum ministry is directing that available stocks go first to households, aiming to prevent panic buying.

To manage domestic use, the minimum gap between LPG bookings in cities is extended from 21 to 25 days. For rural and remote consumers, the gap becomes 45 days. Authorities say these changes help stretch supplies while tankers are delayed, though commercial users receive far lower priority for now.

On 12 March, the oil ministry says oil marketing companies will release 20 percent of average monthly commercial LPG needs. This is to be done with state government coordination. At the same time, the environment ministry temporarily allows hotels and restaurants to use biomass, coal, and kerosene for one month.

Bengaluru breweries and LPG shortage impact

Bengaluru hosts more than 80 microbreweries, many of which depend on LPG-fired boilers. Most outlets require between five and 15 cylinders every day to keep brewing schedules on track. Owners say any extended break in deliveries forces them to slash production during their busiest period.

Prasanna Kumar, co-founder of Bengaluru Brewing Company, explains why the shortage is so disruptive. "The gas boiler generates steam and heat required to process the malt. Switching to firewood or electric boilers on short notice is expensive and time-consuming," he told the Times of India.

Some brewpubs are already planning fuel changes. "We have enough stock of LPG to last until Sunday," said Mukesh Tolani, co-founder of Toit Brewpub, adding that his team is exploring a shift from LPG to diesel and installing electric grills and induction plates to conserve gas.

Kitchen operations are also being reshaped. Several outlets are trimming menus and limiting dishes that need intense heat, such as deep-fried snacks and some Asian preparations. Chefs are opting for simpler plates that can be cooked on induction or other equipment that does not rely on scarce cylinders.

The pressure is not confined to beer. Huli, a craft rum distillery near Mysuru, shut its plant earlier this week after both public and private LPG suppliers said they were told to refill only domestic cylinders. The decision halts production even as demand from bars stays steady.

Commercial allocations are under review. A three-member committee with representatives from Indian Oil Corporation, Hindustan Petroleum, and Bharat Petroleum is now examining LPG distribution for restaurants, hotels, and other businesses. The group is expected to adjust commercial supplies as more imported cargoes become available.

Brewers in Bengaluru worry that these steps may still be too slow for the current season. "Gas is the primary fuel for running the boiler during the brewing process," Kumar said. "It can affect the purity and flavour of the beer." Many pub owners are watching deliveries closely while testing backup fuels.