LPG shortage hits Mumbai eateries: 20% shut, more closures likely

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New Delhi: Amid a severe shortage of commercial LPG cylinders, hotels and restaurants in Mumbai have begun shutting down. According to a statement from AHAR (Indian Hotel and Restaurant Association) on Tuesday, around 20 per cent of the eateries have already closed.

The association has further warned that nearly 50 per cent of establishments in the city could shut down within the next two days if the situation doesn’t improve.

What hotels are doing to stay afloat

The hotels that are still operating have temporarily stopped preparing traditional dishes that require long cooking times. Some establishments are keeping their kitchens closed between 3 pm and 7 pm to conserve gas. Restaurants are also increasing the use of induction stoves and electric ovens, though this raises concerns about higher electricity bills.

According to reports, the supply of commercial LPG cylinders has dropped by 10–20 per cent over the past few days. This has made it difficult for hotel kitchens, which serve thousands of customers daily, to continue operations.

AHAR further said the remaining LPG stocks will determine whether establishments can continue operations or will be forced to shut down. “If the situation continues like this, nearly half of Mumbai’s hotels could shut down in the coming days,” India Today quoted the association as saying.

LPG supply hit amid worsening situation in West Asia

The warning from the association comes amid the worsening situation in LPG supply in various parts of India due to the situation in West Asia.

A large portion of India’s LPG imports comes from Gulf countries. Supply has been disrupted as cargo movement through the Strait of Hormuz faces restrictions following tensions in the region. Moreover, the countries in the region have stopped production of the crude and LPG after facing attacks from Iranian drones and missiles. They have also run out of storage space as ships have been stuck due to the Iran war.

Oil companies have also started prioritising household LPG supply over commercial cylinders.

Meanwhile, the Union government in a statement said a high priority panel has been constituted to ensure LPG supply is uninterrupted to non domestic users, including hotels.