AIADMK MP Warns LPG Supply Disruption Could Cripple Restaurants, Hotels

In his letter, the All India Anna Dravida Munnetra Kazhagam MP highlighted concerns raised by associations representing the restaurant and hospitality sector regarding the continuity of commercial LPG supply to restaurants, hotels, and other food service establishments.

He noted that the restaurant and food service industry relies heavily on commercial LPG for its daily kitchen operations. At present, most establishments do not have practical alternatives such as PNG connectivity or large-scale electric cooking facilities. As a result, any disruption or restriction in the supply of commercial LPG could severely affect the functioning of restaurants and related businesses.

"I wish to draw your kind and immediate attention to the concerns expressed by associations representing the restaurant and hospitality sector regarding the continuity of commercial LPG supply to restaurants, hotels and other food service establishments. The restaurant and food service industry is heavily dependent on commercial LPG for its day-to-day kitchen operations. At present, most commercial establishments do not have viable alternatives such as PNG connectivity or large-scale electric cooking facilities. Therefore, any disruption or restriction in the supply of commercial LPG would severely affect the functioning of restaurants and allied establishments," the letter from the AIADMK MP said.

Inbadurai further warned that such disruptions could negatively impact thousands of small and medium-sized food service businesses and threaten the livelihoods of a large number of workers employed in the sector. It could also inconvenience the general public who depend on these establishments for their daily food needs.

At the same time, he emphasised that ensuring an uninterrupted and adequate supply of domestic LPG cylinders to households remains equally important for meeting the everyday needs and welfare of the common people.

"Such disruptions could adversely impact thousands of small and medium food service businesses and may also affect the livelihood of a large number of workers employed in this sector. It may also cause inconvenience to the general public who depend on these establishments for their daily food requirements. At the same time, uninterrupted and adequate supply of domestic LPG cylinders to households is equally vital for the welfare and day- to-day needs of the common people," the letter added.

He further stated that while he appreciates the efforts of the Government of India to ensure adequate LPG supply for domestic households, it is essential that both commercial establishments and domestic consumers continue to receive an uninterrupted supply through the existing distribution system.

In light of these concerns, he urged Union Minister Hardeep Singh Puri to intervene on priority and take necessary measures to ensure the continuous and sufficient availability of both commercial and domestic LPG. Such steps, he said, are crucial to prevent disruptions in the functioning of the hospitality sector and to safeguard the welfare of the general public.

"While appreciating the efforts of the Government of India to ensure adequate LPG supply for domestic households, it is imperative that both commercial establishments and domestic consumers continue to receive uninterrupted LPG supply through the existing distribution mechanism. In view of the above, I request your goodself to kindly intervene in this matter on priority and take appropriate steps to ensure uninterrupted and adequate supply of both commercial and domestic LPG, so that the functioning of the hospitality sector and the welfare of the general public are not affected. I shall be grateful for your kind and early intervention in this regard," the letter read.

As the West Asia Conflict continues to put pressure on fuel supplies, the Union Government on Tuesday invoked the Essential Commodities Act (EC Act ) to ensure an uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.

According to the order, the supply of natural gas to certain sectors shall be treated as priority allocation and shall be maintained subject to operational availability to one hundred per cent. of their average past six-month gas consumption. These sectors include: Domestic Piped Natural Gas supply; Compressed Natural Gas for transport; LPG production, including LPG shrinkage requirements; Pipeline compressor fuel and other essential pipeline operational requirements.

The order further states that the supply of natural gas to the fertiliser plants shall ensure seventy per cent. of their past six-month average gas consumption, subject to operational availability. It has also asked gas marketing entities to ensure that gas supply to tea industries, manufacturing and other industrial consumers supplied through the national gas grid is maintained at eighty per cent. of their past six-month average gas consumption, subject to operational availability.

All City Gas Distribution entities have been asked to ensure that industrial and commercial consumers supplied through their networks receive eighty per cent. of their past six-month average gas consumption, subject to operational availability.

The oil refining companies have been ordered to absorb the impact of LNG supply disruption to the extent feasible by reducing gas allocation to refineries to approximately sixty-five per cent. of the past six months' gas consumption, subject to operational feasibility.

Every producer, importer, transporter, marketer or distributor of natural gas, including LNG and regasified LNG, has been asked to furnish information relating to production, imports, stocks, allocation, supply and consumption to the Central Government or to any officer authorised by it.

Meanwhile, the Ministry of Petroleum and Natural Gas issued orders to oil refineries to increase Liquefied Petroleum Gas (LPG) production and directed that such additional output be channelled specifically for domestic use.

The government prioritised domestic LPG supply to households to ensure energy security for citizens amidst the ongoing uncertainty in the global oil and energy market due to the West Asia crisis

"In light of current geopolitical disruptions to fuel supply and constraints on the 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 of Petroleum and Natural Gas announced on X.

To manage the current supply environment, the ministry introduced a 25-day inter-booking period for consumers to avoid hoarding and prevent black marketing.

- ANI