- Hotel and restaurant bodies in Bengaluru, Chennai, Mumbai have reported commercial LPG shortages
- LPG prices were raised by Rs 60 for domestic and Rs 115 for commercial cylinders amid war in Middle East
- Centre told oil refineries to increase LPG production and use such extra production for domestic LPG use
Hotel and restaurant industry bodies in Bengaluru, Chennai, and Mumbai have flagged the shortage of commercial cooking gas cylinders due to supply disruptions amid the war in the Middle East, with the Centre ordering oil refineries to increase liquefied petroleum gas (LPG) production.
The price of LPG cylinders was also increased last Saturday due to the Iran-Israel-US war and the disruption it caused in key energy shipping routes, including the Strait of Hormuz. The rates of household cooking gas were raised by Rs 60 and commercial LPG cylinders by Rs 115.
Photo Credit: ANI
The Bangalore Hotels Association on Monday said the hotel and restaurant operations across the city are likely to be affected starting March 10.
"Since the gas supply has stopped, the hotels will be closed from tomorrow," the association said in a statement.
"Since the hotel industry is an essential service, common people, students, and medical professionals, who rely on the hotels for daily meals, will be affected," it said.
"In addition, our hotel industry will also face difficulties until the gas supply returns to normal," it added.
The association said oil companies had guaranteed an uninterrupted gas supply for 70 days, making the sudden stoppage a "big blow" to the hotel industry.
"Therefore, we expect the concerned Union Ministers to take appropriate action immediately in this matter and resume commercial gas supply and provide cooperation to the hotel industry," the statement read.
The association's president, PC Rao, later told reporters that they will function "till the last drop to serve people".
Chennai Hotels' SOS
In Chennai, the hotels' association said the situation has "now become even more critical".
"The food industry works on a 24 x 7 basis for many hospitals who require the food to be supplied on time besides IT Parks, students at college hostels, train and business travellers will all be affected, if the supply of commercial LPG is hindered," association's president M Ravi said in a letter to Prime Minister Narendra Modi.
"There are also banquet bookings undertaken by many star hotels and restaurants which will also be affected. The short supply of commercial LPG to the food industry will also hinder the dependence of the large public across Tamil Nadu," he said.
He urged the Prime Minister for an uninterrupted supply of commercial LPG for the food industry.
Mumbai Hotel Industry Stares At Shutdown
The hospitality sector in Mumbai is also facing an energy crisis, with the severe shortage of commercial LPG cylinders forcing about 20% of hotels and restaurants to suspend operations.
Iconic eateries in areas like Dadar, Andheri, and Matunga have already begun shortening their menus, dropping slow-cooked items like Dal Makhani or Rava Dosa.
Photo Credit: ANI
They have also reduced their operating hours to conserve remaining gas stocks.
The hotel and restaurant industry body Federation of Hotel and Restaurant Association of India (FHRAI) on Monday also flagged the shortage of commercial cooking gas cylinders.
In a letter to Hardeep Singh Puri, the Minister of Petroleum and Natural Gas, it flagged "widespread disruption at the ground level".
The FHRAI stated that several distributors are withholding supplies, citing a government order dated March 5.
"In light of these challenges, we request the government to issue a formal clarification confirming that no such restrictions apply to the hospitality and food service sectors. We further pray for a clear mandate to be issued to all oil marketing companies to ensure the seamless distribution of commercial cylinders," FHRAI Secretary General Jaison Chacko said in the letter.
The National Restaurant Association of India (NRAI) said commercial LPG cylinder suppliers were expressing their inability to meet the supply needs of the restaurant industry, which was "severely impacting" it, and urged the government to clarify/intervene on the issue.
"As per news articles, the Government has clarified that there is no ban on supply of commercial LPG cylinders for the restaurant industry. However, the ground situation is different, with suppliers expressing inability to supply the same. This is severely impacting the restaurant industry and in turn supply of food as an essential service for citizens. We request urgent clarification/intervention," NRAI said in a post on X.
Government On LPG Supplies
The Ministry of Petroleum & Natural Gas said that it has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use.
It also introduced a 25-day inter-booking period to avoid "hoarding and black marketing".
Photo Credit: ANI
"Non-domestic supplies from imported LPG is being prioritised to essential non domestic sectors such as Hospitals and Educational institutions," the ministry said on X.
"For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs (Oil Marketing Companies) have been constituted to review the representations for LPG supply to restaurants/hotels/other industries," it said.
The government has also invoked the Essential Commodities Act (EC Act) to ensure an uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of LPG and divert key hydrocarbon streams to the LPG pool.
"No Room For Anxiety"
Hardeep Singh Puri last week said that India is in a "comfortable position" and there is "no room for anxiety".
"Energy imports into the country are in full flow from all non-Hormuz routes. The energy requirements of our citizens are being fully met," he said.
Oil prices fell on Tuesday after surging past $100 a barrel on Monday, their highest level in more than three years. Brent futures fell $6.51, or 6.6%, to $92.45 a barrel at 0018 GMT, while US West Texas Intermediate (WTI) crude was down $6.12, or 6.5%, to $88.65.
