As the conflict in the Middle East drags on, the hospitality sector in metro cities is now seen to be facing a shortage of LPG cylinders. The restaurant associations in Maharashtra and Karnataka on Monday warned that eateries could shut down within days if supplies are not restored. Industry sources say the disruption is already affecting operations in Mumbai and Bengaluru, with hotels and restaurants struggling to secure cooking gas as global supply chains tighten due to the ongoing West Asia conflict following strikes by the United States and Israel on Iran.
LPG Shortage Threatens Restaurant Operations in Mumbai, Bengaluru
Restaurants in Mumbai and Bengaluru are facing a serious cooking gas shortage, with industry bodies warning that many establishments may soon be forced to shut if supplies are not restored quickly.
Industry representatives say the shortage of commercial LPG cylinders has been spreading rapidly over the past few days.
Also Read: LPG Cylinder Booking Period Increased From 21 to 25 days, Govt Tells Companies To Boost Production
Mumbai Restaurants Warn of Shutdown
Vijay Shetty, president of the India Hotels and Restaurant Association told India Today the crisis could soon paralyse the restaurant industry in Mumbai.
“All restaurants in Mumbai will be shut in the next two days if this shortage continues,” Shetty said.
He added that the association has written to Union Petroleum Minister Hardeep Singh Puri and is also in touch with Maharashtra Civil Supplies Minister Chhagan Bhujbal.
“As of today, 10–20 percent of our members are facing problems. By tomorrow it will be 60 percent. By the day after tomorrow, it will be 100 percent impact on restaurants, forcing them to shut,” he said.
Commercial LPG Supply Nearly Stopped
Restaurant owners say commercial LPG supplies have largely stopped since Sunday.
At the same time, deliveries of domestic LPG cylinders are also getting delayed. Many consumers are now waiting between two and eight days after booking a cylinder.
Annu Shetty, who runs Hotel Sagar in Mulund told the outlet that it has become extremely difficult to find commercial cylinders.
“We are not finding commercial LPG cylinders. At a few places it is available but a Rs 1,750 cylinder is being sold for Rs 1,950,” she said.
Bengaluru Hotels Also Raise Alarm
The shortage has also begun affecting Karnataka.
The Bangalore Hotels Association warned that hotel operations in Bengaluru could be disrupted starting March 10 because commercial LPG supplies have suddenly stopped.
“Since the gas supply has stopped, the hotels will be closed from tomorrow,” the association said in a statement.
The association said the disruption would affect many people who depend on hotels for daily meals, including students, workers and medical professionals.
P C Rao said hotel owners may have no option but to suspend operations.
“Without gas, food and refreshments will not be available at the hotels starting tomorrow. Hotels will not open,” Rao said.
“We have spoken and sent communications to central ministers and also informed MPs from Bengaluru. Without gas, it will not be possible to prepare food, so the government should respond immediately.”
Government Prioritises Household LPG
Government sources said oil marketing companies – Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum – have been asked to prioritise LPG supplies for households.
Officials said the waiting period between LPG bookings has been increased from 15 days to 25 days to prevent hoarding.
India is also looking at new suppliers to stabilise LPG imports. Possible sources include Algeria, Australia, Canada and Norway.
Oil companies have also been asked to increase LPG production and adjust their output to meet demand.
Centre Steps In to Stabilise Supply
The Ministry of Petroleum and Natural Gas said it has taken steps to stabilise LPG supplies after global geopolitical tensions disrupted fuel supply chains.
In a statement, the ministry said oil refineries have been asked to increase LPG production and divert the additional output for domestic use.
“In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use,” the ministry said.
The government also said domestic household LPG supply is being prioritised. A 25-day gap between bookings has been introduced to stop hoarding and black marketing.
Imported LPG meant for non-domestic use is currently being prioritised for essential sectors such as hospitals and educational institutions.
Committee Formed to Review Commercial Supply
The ministry has also formed a committee to review requests from restaurants, hotels and other industries that depend on commercial LPG.
The committee, which includes three executive directors from oil marketing companies, will assess the needs of affected sectors and allocate available LPG supplies accordingly. For sectors such as restaurants, automobiles and other commercial users, the committee will examine their requirements and try to manage the limited supply.
