Several hotel associations across India have reported a shortage of commercial LPG cylinders, just days after the prices of both commercial and domestic gas cylinders were increased nationwide.
Hotel associations in Bengaluru and Chennai flagged disruptions, warning that restaurants in the respective cities may be forced to halt operations on Tuesday, March 10, if the LPG supply was not restored.
The development comes amid a hike in oil prices globally due to the ongoing conflict between Iran and the US which has triggered unrest across the Middle East.
The situation has triggered concerns of a further spike in energy prices, given Iran's targeting of the Strait of Hormuz, a key shipping lane through which a fifth of the world’s oil is transported.
Bengaluru, Chennai eateries shut down?
The Chennai Hotels Association and the Bangalore Hotels Association on Monday claimed that commercial LPG supply to restaurants in both cities have taken a massive hit.
“Since the gas supply has stopped, the hotels will be closed from tomorrow,” the association in Bengaluru said, as quoted by news agency PTI.
Besides, the body also said that the disruption in operations could impact common people, students, and medical professionals, who rely on the hotels for daily meals.
The Chennai hotels body also issued a similar statement, as it sought Prime Minister Narendra Modi's intervention in the matter.
“Commercial LPG distributors have completely stopped supplying cylinders, stating that they have no stock available. As a result, many restaurants are forced to shut down,” the body said in a tweet.
It also said that existing banquet bookings taken by hotels will be impacted, along with the supply of food to IT parks and college hostels.
Apart from these hotel associations in Bengaluru and Chennai, the National Restaurant Association of India (NRAI) also urged the government's intervention as it warned of “catastrophic closure” of restaurants.
“The restaurant industry is predominantly dependent on commercial LPG for its operations. Any disruption therein will lead to a catastrophic closure of majority of restaurants,” NRAI said, as reported by HT earlier.
Gurugram, Mumbai hoteliers left worried
The southern cities mentioned above aren't the only ones facing a big disruption in their hotel operations.
Restaurants in Gurugram and Mumbai have also reported a shortage of commercial LPG, with some reportedly considering alternative arrangements.
“Our vendor informed us that commercial LPG deliveries have been paused temporarily. We have backup cylinders that can last about three days. If the situation continues, we may have to shift to residential cylinders or reduce menu items,” Rohit Arora, manager of a restaurant in Gurugram, told HT.
According to an NDTV report, eateries in areas like Dadar, Andheri, and Matunga have dropped slow-cooking items on their menus and shortened their operating hours in order to save on commerical LPG.
Meanwhile, the Pune Municipal Corporation (PMC) has temporarily closed the city’s gas crematoriums, directing that available propane and butane be prioritised for domestic LPG supply across the country.
What did govt say?
Amid oil price hike concerns and reports of LPG shortage to hotels in India, the government issued a statement on Monday, ordering oil refineries to increase LPG production and use such extra production for domestic use.
“The ministry has prioritised domestic LPG supply to households and introduced 25 day inter- booking period to avoid hoarding/black marketing,” the ministry of Petroleum and Natural Gas said in a statement.
The ministry also said that a committee has been constituted to review the representations for LPG supply to restaurants.
The prices of LPG cylinders for commercial use was hiked by ₹115 and for domestic use by ₹60 last week.
