Hotel Associations Demand Uninterrupted LPG Supply Amid Global Shortage

Hotel associations in Karnataka and Tamil Nadu are urging the Central government to ensure an uninterrupted supply of commercial LPG cylinders, which they say is critical for their survival. They report that supply has been disrupted, prices have increased, and a previous discount has been cancelled, severely impacting operations. The shortage is linked to global supply chain disruptions from the West Asia conflict, prompting the government to prioritize gas for sectors like health and agriculture. While domestic LPG supply remains unaffected, small hotels and eateries are being forced to reduce menu items due to the limited commercial cylinder availability.

Key Points: Hotel Associations Seek Govt Help for LPG Supply Amid Shortage

  • Hotel associations seek govt intervention
  • Commercial LPG supply disrupted for hotels
  • Small eateries reducing menu items
  • Govt prioritizes gas for essential sectors
3 min read

Tamil Nadu, Karnataka hotel associations call for Centre to ensure "uninterrupted" LPG supply amid disruptions

Hotel associations in Tamil Nadu and Karnataka urge Centre to ensure uninterrupted commercial LPG supply amid global disruptions affecting eateries.

"How can hotel industry survive without cylinders? It is the main source for us. - Santosh Malnad"

Bengaluru, March 10

As the ongoing West Asia conflict has brought disruptions to the global supply chain on natural gas, hotel associations and restaurants across India are also facing the brunt of low supply, asking the Central government to ensure that an "uninterrupted supply" is ensured across the industry.

In Karnataka, hotel association leaders are facing problems and asking for government intervention. "We are forcing the Central government to bring the hotels under the Essential Commodities section. The government has ordered the oil companies to give commercial cylinders to health, agriculture, and education. How can hotel industry survive without cylinders? It is the main source for us," Santosh Malnad, Director Hotel Owners Association told ANI.

"They should ensure the free flow of cylinders to hotel industry, this is avery strong issue, so please interfere in this matter and make sure we get free flow of commercial cylinders. The government has cancelled the discount too, which was Rs 150 on 19 KG, and they also hiked the price of Rs 145," he added. Tamilnadu Traders Union Federation, has raised concern over the ongoing LPG shortage affecting hotels and small food businesses across Tamil Nadu.Speaking about the issue, Vikramaraja Raja said that the traders' body has made a strong request to M. K. Stalin to intervene in the matter and urge the Government of India to resolve the gas supply shortage at the earliest.According to him, small traders and small hotels will be affected more severely than large hotels. Due to the limited supply, several eateries in Chennai and other parts of Tamil Nadu have already started reducing items on their menus while continuing operations with the available stock.

Domestic LPG cylinders continue to be supplied to households without interruption. Authorities have also extended the time limit for booking new cylinders.

RK Gupta, the National Vice President of the LPG Association, has said that there is no shortage in the supply of domestic LPG.

"According to the oil companies, there is no shortage in supply. Commercial LPG cylinders have not been issued since yesterday, but an exemption has been given to hospitals and educational institutions... There is no shortage in the supply of domestic LPG," Gupta said.

The Central government on Tuesday announced new rules for prioritising supply of natural gas, including LPG and PNG for use across the country, keeping in mind the shortage caused by the disruption of the global supply chain amid the West Asia conflict.

"The Central Government, in order to ensure equitable distribution and continued availability of natural gas for priority sectors, considers it necessary to regulate production, sector-wise allocation and diversion of natural gas supplies, distribution, disposal, acquisition, use or consumption of natural gas, including LNG and re-gassified-LNG," the notification by the Centre read.

"The Central Government has assessed that the ongoing conflict in the Middle East has resulted in the "disruption of liquefied natural gas shipments through the Strait of Hormuz", which has led to suppliers invoking force majeure clause which would entail diversion of natural gas to the priority sectors," according to the gazette notification added.

- ANI

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Reader Comments

P
Priya S
First the price hike, now supply issues. It's a double blow for the hospitality sector still recovering from the pandemic. The Centre must ensure a steady supply chain. Our idli and dosa stalls can't run on promises. 🍛
R
Rahul R
While I understand the global situation, the government's communication is confusing. One official says no shortage, hotel associations say there is. Need clarity and a proper plan to support our small hotel owners.
A
Aman W
Good that households are not affected, but commercial kitchens are the backbone of our food culture. From Bangalore's cafes to Chennai's biryani spots, all will suffer. Hope the state CMs take this up strongly with the Centre.
K
Kavitha C
The timing is terrible. With summer and holiday season starting, hotels and restaurants will see more customers. Reducing menu items is not a solution. The government should have had a contingency plan ready.
D
David E
Respectfully, while the hotel industry's concerns are valid, the government's priority for health and agriculture during a global supply crisis makes sense. Perhaps a temporary, rationed supply system for commercial users could be a fair middle path.

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