Representatives of Mumbai’s hoteliers led by the Indian Hotel And Restaurant Association (AHAR) met Food & Civil Supplies Minister Chhagan Bhujbal here on Tuesday to discuss the shortage of liquefied petroleum gas (LPG) as a fallout of the ongoing Iran war.
The development came even as Sharad Pawar-led NCP leader Rohini Khadse threatened that “the gas shortage should be resolved immediately, otherwise we will take to the streets”.
AHAR also sent an SOS to the Union Petroleum Ministry and the Maharashtra state civil supplies department regarding the acute shortage of cooking gas cylinders in Mumbai for hotels, restaurants and commercial establishments.
“Already 20% of hotels in Mumbai have shut due to gas shortage and another 60% will shut down in the next couple of days. The crisis caused by the war in Iran is impacting us now. A thriving black market in LPG cylinders has emerged. A commercial cylinder costing Rs 1,600 each is now being sold for Rs 3,000,” AHAR President Shetty said.
In a letter to the Union Ministry of Petroleum and Natural Gas, AHAR President Vijay K Shetty stated that while the industry could cope with a limited reduction of about 25% in cooking gas supply, a complete stoppage would prove to be disastrous, affecting both businesses and millions of workers dependent on them.
AHAR stated that any cut in gas supply beyond 25% would be catastrophic, making it “practically impossible” for hotels and restaurants to continue operations.
“In view of the unavoidable situation arising globally, we humbly submit that the industry may be able to manage up to 25% curtailment in gas supply. However, a 100 percent curtailment or complete stoppage would make it practically impossible for hotel establishments to operate. We therefore request your kind intervention to ensure that the hospitality industry continues to receive at least minimum gas supply so that restaurants and hotels can continue to function and protect the livelihoods of workers,” according to the AHAR statement.
India consumes around 31.3 million tonnes of liquefied petroleum gas (LPG) annually, out of which about 87 per cent is used by household kitchens, while the remaining LPG (cooking gas) is used by hotels and restaurants.
Nearly 62 per cent of India’s cooking gas requirement is met through imports. After the conflict involving Iran, Israel and the United States, LPG supply routes have been affected due to the closure of the Strait of Hormuz, through which India typically receives around 90 per cent of its LPG imports from countries Saudi Arabia and Qatar.
Yet, Minister of State for Food & Civil Supplies Yogesh Kadam said here on Tuesday that, “We have not come across any examples of hotels being closed. The central government has taken a decision regarding LPG for commercial use. However, there are no problems regarding domestic use. There will be no shortage for the next few days, because gas reserves in the Gulf have been supplied to us. Therefore, this issue will be resolved soon. We are following the orders given by the central government. A warlike situation has arisen. The Chief Minister is keeping an eye on everything”.
Meanwhile, Uddhav Thackeray-led Shiv Sena MLA Aaditya Thackeray demanded that the central government must release official information about the cooking gas cylinder shortage in the country. Tweeting from his X account on Tuesday, Aaditya Thackeray stated that “The central government should give official information to the entire country about the consequences and hardships that the common people will have to face due to this war”.
Talking about the issue, Congress MLA Satej Patil said that restrictions have been imposed on cooking gas to commercial establishments like hotels. “Gas supply to households is also likely to be affected. Petroleum companies do not seem to have raw materials. This is the result of a wrong foreign policy”.
“So many people use gas, whether in the industry or business or at home. The impact of inflation will be felt by 100 percent of the people. The middle class will have to bear it for the next 10 days. The government is trying to show that everything is fine in order to prevent a panic situation, but everybody knows what the ground situation is. The government should assure the house that there will be no gas shortage. We will raise this question in the house”.