LPG Crisis: Hotels Warn Of Shutdown; PM Modi Meets Oil, Foreign Ministers
PM Narendra Modi met the the oil and foreign ministers Monday as the LPG crisis deepened across the country amidst the ongoing Middle East conflict
Prime Minister Narendra Modi held a meeting with the Oil and Foreign ministers Monday as the LPG crisis deepened across the country, with hotels warning of an impending shutdown. The premier hotel body Federation of Hotels and Restaurant Associations of India (FHRA) said that the issue has become "extremely serious over the past week".
Pradeep Shetty, VP, FHRAI and Spokesperson of Hotel and Restaurant Association (Western India), said, "The shortage of commercial LPG has become extremely serious over the past week, with intermittent disruptions escalating into a near complete halt in supply in several regions since yesterday. Following the 5th March notification by the Ministry of Petroleum and Natural Gas, there has been considerable confusion among suppliers and distributors, many of whom have stopped supplying commercial LPG cylinders to hotels, restaurants and food service establishments."
He added, "We are already receiving reports of severe shortages from cities including Mumbai, Pune, Aurangabad and Nagpur, while similar disruptions are being reported in States such as Delhi, Karnataka, Telangana and Andhra Pradesh."
He warned, "If the situation does not improve within the next two days, nearly 50 per cent of hotels and restaurants in Mumbai may be forced to temporarily shut operations depending on the stock of cylinders they currently have. This will especially affect international tourists both, who are already here and those who will be visiting the country. Also, smaller and medium-sized eateries will be the first to be impacted, as they typically operate with limited reserves."
Centre Invokes ESMA
The Centre has invoked the Essential Commodities Act to ensure regular supply of cooking gas after a commercial LPG shortage linked to global energy disruptions amid the Iran–Israel conflict has left hotels and restaurants across cities like Bengaluru, Chennai and Mumbai staring at a shutdown. The order is to make sure that natural gas supply is regulated in such a way that the highest priority is given to piped natural gas for homes and CNG for vehicles.
According to sources quoted by news agency ANI, there will be "100% assured supply to domestic piped gas to homes and CNG for vehicles". The sources also assured "80% of the previous 6-month average supply to tea industries, manufacturing, and industrial consumers connected through the natural gas grid, 80% of the previous 6-month supply to industrial and commercial natural gas consumers, and 70% of the previous 6-month average supply to fertiliser plants."
The sources added that natural gas supply has been cut from refineries (35% cut) and petrochemicals. "India was getting 30% of its natural gas from Hormuz, and through this control order, priorities have been set for natural gas. India is purchasing natural gas from other routes to address the short supply."
In a major ripple effect due to the Iran-Israel-US war and the disruption it caused in key energy shipping routes in the Middle East, the hospitality sector in major cities like Bengaluru, Mumbai and Chennai is now facing a sudden shortage of commercial LPG cylinders, with restaurant associations warning that eateries could shut down within days if supplies are not restored.
The widening conflict in the Middle East disrupted fuel lifelines, including India's LPG supplies, the government has prioritised domestic cooking gas supplies to households. This has led to a supply crunch for hotels and restaurants which use market priced commercial LPG.
This comes after last week, the government increased the price of LPG cylinders, raising household cooking gas rates by Rs 60 and commercial LPG cylinder prices by Rs 115, citing supply pressures.
Karnataka CM Writes To Hardeep Puri
Karnataka CM Siddaramaiah has written to Union Petroleum Minister Hardeep Singh Puri, requesting his intervention to ensure adequate commercial LPG supply is made available to hotels, restaurants and commercial establishments and give directions to the Oil Marketing Companies to address the current supply constraints.
Bengaluru Hotels Warn of Closures
The
Bangalore Hotels Association on Monday (March 9) said that Hotels across Bengaluru are set to remain closed from Tuesday (March 10) after a disruption in the supply of commercial LPG cylinders, In a statement, the association said that the hotel industry will also face difficulties until the gas supply returns to normal. The Hotels Association added despite the oil companies assured that there would be no disruption in gas supply for 70 days, the sudden stoppage is a big blow to hotel industry across the city.
"The supply of gas cylinders for commercial use has been stopped from today. Since the hotel industry is classified as an Essential Service, the common people, senior citizens, students, medical, and other people who depend on it will face difficulties in their daily meals," the notice read, according to ANI news agency.
Association president PC Rao later said hotels would continue operating “till the last drop” of available gas stocks while urging the government to restore supply immediately.
https://x.com/ANI/status/2031228651870761265?s=20
Chennai Hotels Seek Urgent Government Intervention
Hospitality industry leaders in Chennai have also raised concerns over the LPG shortage. The hotels’ association wrote to Prime Minister Narendra Modi requesting urgent intervention to ensure uninterrupted supply of commercial cooking gas. Association president M Ravi said the food industry operates around the clock and supplies meals to hospitals, IT parks, college hostels, train passengers and business travellers. Any prolonged disruption could affect a large number of people who rely on restaurant food daily.
He also noted that banquet bookings and events at hotels could be impacted if gas supplies remain uncertain.
Mumbai Hospitality Sector Also Under Pressure
The hospitality industry in
Mumbai is also facing a growing crisis due to the shortage of commercial LPG cylinders. Industry estimates suggest that nearly 20% of hotels and restaurants have already suspended operations. 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.
According to a report by NDTV, several well-known eateries in areas like Dadar, Andheri and Matunga have begun shortening their menus and reducing operating hours to conserve gas supplies. Slow-cooked dishes such as dal makhani and rava dosa are among the items being temporarily removed from menus.
Watch: Mumbai hotel owner seeks help
Some restaurants in Mumbai - from Nariman point to Mulund - have decided to change dishes on their menu, speeding up cooking processes and removing dishes that take a long time to cook, according to an Indian Express report.
Industry Bodies Raise Alarm
National-level hospitality organisations have also flagged the issue. The Federation of Hotel and Restaurant Association of India (FHRAI) wrote to Petroleum and Natural Gas Minister Hardeep Singh Puri highlighting widespread disruption at the ground level. The association said several LPG distributors were withholding supplies, citing a government order issued earlier this month. FHRAI Secretary General Jaison Chacko requested the government to clarify that no restrictions apply to the hospitality sector and to ensure seamless distribution of commercial LPG cylinders.
Similarly, the National Restaurant Association of India (NRAI) said suppliers were unable to meet the industry’s gas requirements despite government assurances that there is no official ban on commercial LPG supply.
Government Response - Hardeep Puri Breaks Silence
The Ministry of Petroleum and Natural Gas has said it has directed oil refineries to increase LPG production to meet rising domestic demand. The ministry also introduced a 25-day inter-booking period for LPG refills to prevent hoarding and black marketing.
Officials said imported LPG supplies are currently being prioritised for essential sectors such as hospitals and educational institutions. A committee of senior executives from oil marketing companies has also been set up to review supply requests from industries including restaurants and hotels.
Minister Hardeep Singh Puri recently said India’s energy supply remains stable and assured that there is “no room for anxiety,” adding that imports from routes outside the Strait of Hormuz continue without disruption.
Former Karnataka CM B Bommai Reacts
Former Karnataka CM and BJP MP Basavaraj Bommai says, "Petrol and diesel are under control, but LPG, which comes from Gulf countries, has been temporarily halted. I think it will be back in operation by next week... The government is working continuously. Because of this, Iran has granted passage to three ships carrying our country's oil. That is the goodwill of the PM Modi government... Whatever happens, they (the opposition) will link it to PM Modi. They are not thinking about the country... They want to play politics on everything..."
Karnataka DyCM DK Shivakumar: 'Discuss In Parliament'
On reports of commercial LPG shortage, Karnataka Deputy CM DK Shivakumar says, "The government should discuss this issue in Parliament. Because the government is not giving time to discuss this issue, all INDIA alliance MPs are protesting. What are they (govt) fearing? On the occasion of Women’s Day, gas prices were increased. No (BJP) MPs spoke about it or protested on this issue."
Shashi Tharoor Reacts
Congress MP Shashi Tharoor reacted to reports of shortage of commercial LPG in Maharashtra and Karnataka, saying," This is a very serious problem which is happening due to the conflict in Iran...There is a shortage of availability, and also the prices are being hiked."
Samajwadi Party Reacts
Samajwadi Party MP Afzal Ansari reacted to reports of commercial LPG shortage, saying, "The common people are fed up with this government's wrong decisions... When these people came, they were saying that there is a Rs 400 per cylinder in this country. Today, Rs 1200 per cylinder is not available. The people are disappointed with this... It is not just a matter of gas; everything is becoming expensive... In this difficult situation... the leaders are not ready to say anything." SP leader Dr Ashutosh Verma said, "The cost of the domestic cylinder has increased by ₹60, and the commercial cylinder by ₹115. We are facing issues with petrol availability. The barrels that used to come from the Strait of Hormuz had stopped. Who is responsible for this?"
India's LPG Consumption
India consumed some 31.3 million tonnes of LPG annually. As much as 87 per cent of this is in the domestic sector i.e. household kitchens, and the rest in commercial establishments such as hotels and restaurants. Of this total requirement, as much as 62 per cent is met through imports. The US and Israel attack on Iran and Tehran's retaliation has shut the Strait of Hormuz - the conduit through which India got 85-90 per cent of its LPG imports from countries like Saudi Arabia.
Source:
A commercial LPG shortage linked to global energy disruptions amid the Iran–Israel conflict is affecting hotels and restaurants across cities like Bengaluru, Chennai and Mumbai, forcing some establishments to cut menus or shut operations., City, Times Now
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