Gas Supply Crisis: Restaurants and hotels in Mumbai and Bengaluru are on the verge of closure due to shortage of commercial LPG cylinders. Global supply has been disrupted due to West Asia tensions, while the government has taken steps to give priority to domestic gas supply.
LPG Cylinder Shortage: The sudden shortage of commercial LPG cylinders in India’s two big cities Mumbai and Bengaluru has put the hotel and restaurant industry in trouble. Restaurant associations have warned that if gas supply does not return to normal soon, hundreds of restaurants may be closed within a few days. Increasing geopolitical tension in West Asia and disruption in global supply are being said to be the main reasons behind this crisis.
Can restaurants really be closed due to shortage of gas?
People associated with the hospitality sector say that the supply of commercial LPG has suddenly reduced. According to Vijay Shetty, President of India Hotels and Restaurants Association, if this situation continues for two-three days, many restaurants in Mumbai may have to be closed. He said that currently about 10-20% restaurants are affected by gas shortage, but if the supply is not restored soon, this number can increase rapidly. The industry has demanded immediate intervention from Union Petroleum Minister Hardeep Singh Puri and the state government on this issue.
Why is there a sudden shortage of LPG cylinders?
Industry experts say that this crisis is not limited to India only. The global supply chain has been affected due to the ongoing conflict and geopolitical tension in the Middle East. After increasing tension in the region related to Iran, there has been interruption in LPG supply and shipment at the international level. Its effect is now visible even in big cities of India, where hotels and restaurants are finding it difficult to get gas cylinders.
Is the price of gas increasing in the black market?
Some restaurant owners in Mumbai say that where cylinders are available, commercial LPG cylinders are being sold at expensive prices. A hotel owner in Mulund said that a cylinder which usually costs Rs 1750 is now being sold for around Rs 1950. Due to this, the financial pressure on small restaurants and dhabas is increasing.
Is the delivery of domestic LPG cylinders also getting delayed?
The effect of gas shortage is now reaching homes too. At many places, people are booking domestic LPG cylinders early, due to which long queues are forming at the dealers. Dealers say that earlier the delivery was done in 2-3 days, now at some places one has to wait for 6-8 days.
Why the warning of closure of hotels in Bengaluru?
The Bengaluru Hotels Association in Karnataka has also warned that if the gas supply is not restored, many hotels and small restaurants may be forced to close their operations from March 10. The association says that a large number of students, office workers and medical staff in the city depend on hotels for daily food. If hotels are closed, it will affect the everyday life of common people.
What steps did the government take on this crisis?
The government says that domestic LPG supply is being given priority so that common people do not have to face gas shortage. Oil companies have been instructed to increase LPG production and make more gas available for domestic consumption. Apart from this, to prevent hoarding and black marketing, the waiting period between cylinder booking has been increased from 15 days to 25 days. According to government sources, India is now exploring new options to import LPG from countries like Algeria, Australia, Canada and Norway so that the supply can be stabilized.