LPG crisis in India: Bengaluru, Chennai, Gurugram, and Mumbai face hurdles

Restaurants in top cities may be closed as hotel associations flag LPG disruptions amid higher global oil prices driven by the US-Iran conflict.

Days after the prices of both commercial and domestic gas cylinders were increased nationwide, several hotel associations across India have reported a shortage of commercial LPG cylinders. Hotel associations in Bengaluru and Chennai have flagged disruptions, warning that restaurants in the respective cities may be forced to halt operations on Tuesday, March 10, if the LPG supply is not restored.

Hotel associations say LPG disruptions may force them to halt operations.

The development comes amid a hike in oil prices globally due to the ongoing US-Iran conflict, which has led to unrest in 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.

Eateries in major Indian cities to shut down?

On Monday, the Chennai Hotels Association and the Bangalore Hotels Association claimed that commercial LPG supply to restaurants in both cities has taken a massive hit. The association in Bengaluru said, as quoted by news agency PTI, “Since the gas supply has stopped, the hotels will be closed from tomorrow.” Besides, the body said that disruptions in operations could affect the common people, students, and medical professionals who rely on hotels for daily meals. In a similar statement, the Chennai Hotels Body sought Prime Minister NarendraModi’s intervention in the matter. The body in a tweet wrote, “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.” 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 Bengaluru and Chennai, hotels in Gurugram and Mumbai have also seen a massive hit due to LPG cylinder disruptions. These cities have also reported a shortage of commercial LPG, with some reportedly considering alternative arrangements. The National Restaurant Association of India (NRAI) also urged the government’s intervention, warning of “catastrophic closure” of restaurants. NRAI said, as reported by a leading portal earlier, “The restaurant industry is predominantly dependent on commercial LPG for its operations. Any disruption therein will lead to a catastrophic closure of the majority of restaurants.”