Hotel and restaurant sector associations in Bengaluru, Chennai, and Mumbai have reported a shortage of commercial cooking gas cylinders as a result of supply delays caused by the Middle East war, with the Centre instructing oil refineries to expand liquefied petroleum gas (LPG) output.
Last Saturday, the price of LPG cylinders soared due to the Iran-Israel-US war and the disruption it generated in vital energy transport routes, including the Strait of Hormuz. Household cooking gas prices increased by Rs 60, while commercial LPG cylinders increased by Rs 115.According to the Bangalore Hotels Association, hotel and restaurant operations in the city may experience disruptions beginning March 10.The association announced that hotels will be shuttered starting tomorrow due to a gas supply interruption.The hotel industry is crucial for daily meals for many individuals, including students and medical professionals.Furthermore, our hotel industry will have challenges until the gas supply returns to normal," it stated.
The group stated that oil firms had guaranteed an uninterrupted gas supply for 70 days, making the sudden interruption 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," according to the statement.
PC Rao, the association's president, later informed reporters that they will work "till the last drop to serve people".
Chennai Hotels' SOS
The hotel association in Chennai stated that the situation has "now become even more critical".The food industry operates 24 hours a day, seven days a week for many hospitals that require food to be delivered on time. Additionally, IT parks, students at college hostels, train and business travelers will all be impacted if the supply of commercial LPG is disrupted," said association president M Ravi in a letter to Prime Minister Narendra Modi."Banquet bookings by many star hotels and restaurants will also be impacted. "The short supply of commercial LPG to the food industry will also impede the large public's reliance in Tamil Nadu," he said.
He requested the Prime Minister to ensure an uninterrupted supply of commercial LPG for the food industry.
Mumbai's Hotel Industry Is Set to Close
The hospitality sector in Mumbai is also experiencing an energy crisis, with a major scarcity of commercial LPG cylinders forcing around 20% of hotels and restaurants to close.
Iconic cafes in Dadar, Andheri, and Matunga have already begun to trim their menus, removing slow-cooked dishes like Dal Makhani and Rava Dosa.They have also shortened operating hours to conserve remaining gas supplies.
On Monday, the Federation of Hotel and Restaurant Association of India (FHRAI) reported a shortage of commercial cooking gas cylinders.
In a letter to Hardeep Singh Puri, the Minister of Petroleum and Natural Gas, it mentioned "widespread disruption at the ground level".
According to the FHRAI, numerous distributors are delaying supply due to a government order dated March 5.In view of these problems, we propose that the government offer a formal clarification indicating that no such prohibitions apply to the hospitality and food service industries.We also ask for a clear mandate to be granted to all oil marketing businesses to facilitate the smooth distribution of commercial cylinders," FHRAI Secretary General Jaison Chacko wrote in the letter.
The National Restaurant Association of India (NRAI) expressed concern that commercial LPG cylinder suppliers were unable to meet the restaurant industry's supply needs, which was "severely impacting" the industry. The NRAI urged the government to intervene and clarify the situation. However, the reality is different, with suppliers declaring their inability to deliver the same. This has a significant impact on the restaurant business and, as a result, the availability of food, which is an essential service for citizens.Government On LPG Supplies
The Ministry of Petroleum and Natural Gas stated that it has issued orders to oil refineries to increase LPG production and use the additional production for domestic LPG usage.
It also instituted a 25-day inter-booking interval to prevent "hoarding and black marketing"."Non-domestic supplies from imported LPG is being prioritised to essential non domestic sectors such as Hospitals and Educational institutions," according to the ministry's statement.A committee of three EDs of OMCs (Oil Marketing Companies) has been formed to assess representations for LPG supply to restaurants, hotels, and other non-domestic sectors," it stated.To ensure an uninterrupted supply of home cooking gas, the government has directed refineries and petrochemical facilities to maximize LPG production and redirect critical hydrocarbon streams to the pool."No Room For Anxiety."
According to Hardeep Singh Puri, India is in a "comfortable position" with "no room for anxiety".Energy imports into the country are flowing freely via all non-Hormuz routes. "Our citizens' energy requirements are fully met," he stated.

Oil prices dipped on Tuesday after rising above $100 a barrel on Monday, the highest level in more than three years. Brent futures slid $6.51, or 6.6%, to $92.45 per barrel at 0018 GMT, while US West Texas Intermediate (WTI) crude dropped $6.12, or 6.5%, to $88.65.