Hotel and restaurant associations in major Indian cities are reporting tight supply of commercial liquefied petroleum gas (LPG) amid the ongoing conflict in Iran.
According to one NDTV According to the report, groups representing hospitality businesses in Bangalore, Chennai and Mumbai have flagged that irregular deliveries of commercial LPG cylinders are affecting kitchen operations and food services.
LPG cylinder prices have also risen recently, adding to supply concerns as the ongoing conflict has affected key energy transport routes in the Middle East. Domestic LPG cylinder prices have increased by 60 rupees ($0.65) and commercial cylinders by 115 rupees ($1.25).
In Bangalore, the Bangalore Hotels Association has asked the authorities to ensure supply to hotels and restaurants, arguing that food services fall under essential services and need to ensure fuel. It added that operations of hotels and restaurants in the city may be affected from today (March 10).
In Chennai, the city’s hotels association told the publication that access to commercial LPG has “become even more fragile”, signaling a worsening situation for operators.
Mumbai’s hospitality sector is also under pressure.
The National Restaurant Association of India (NRAI) has written to India’s Petroleum and Natural Gas Minister Hardeep Singh Puri about the dire situation.
In a post Xthe union said: “According to news articles, the government has clarified that there is no ban on the supply of commercial LPG cylinders to the restaurant industry.
“However, the situation on the ground is different, the suppliers are not able to supply the same.
“This is severely affecting the restaurant industry and consequently, the supply of food as an essential service to citizens. We seek urgent clarification/intervention”.
Meanwhile, the Ministry of Petroleum and Natural Gas has directed domestic refiners to increase LPG production, with increasing volumes for the local market.
To prevent speculative buying, the ministry has also introduced a minimum gap of 25 days between LPG bookings, a move it says is to prevent “hoarding and black marketing”.
It has also constituted a committee including three Executive Directors (EDs) from Oil Marketing Companies (OMCs) to review requests for LPG supply to restaurants, hotels and other industries.
“Middle East Conflict Hits LPG Supply to India’s Hospitality Sector” was originally created and published by Verdic Food Services, a brand owned by Global Data.
