Ongoing military strikes by the United States (U.S.) and Israel on Iran have begun to ripple through global energy supply chains, contributing to an acute shortage of liquefied petroleum gas (LPG).
acute shortage of the LPG in India is forcing restaurants and hotels across the country to scale back operations.
Officials and industry representatives said Wednesday that the hospitality sector has been severely affected as supplies of commercial LPG cylinders have dwindled in major urban centers including Delhi, Mumbai, Chennai, Bengaluru and Kolkata.
Hotel and restaurant associations in Mumbai, Bengaluru and Chennai earlier warned that an acute shortage of commercial LPG could force many establishments to shut down if supplies are not restored quickly.
Commercial kitchens in the Indian capital territory of Delhi and other major cities have already suspended certain operations while attempting to switch to alternative cooking methods to remain open.
Many restaurants have reduced their menus, while others have turned to wood and coal-fired cooking to maintain limited service.
“We are only serving sandwiches, salads and other items which can be prepared without the use of gas,” Mohar Singh, manager at the lawyers’ canteen at the Delhi High Court, told local media.
“We applied for gas at several places, but so far it hasn’t been delivered, and nothing can be said about when supply will be restored.”
On Tuesday, hotel owners’ associations in Chennai described the hospitality sector as an “essential service” and urged the federal government to urgently resume gas supplies.
“The situation has now become even more critical. Commercial LPG distributors have completely stopped supplying cylinders, stating that they have no stock available.
“As a result, many restaurants are forced to shut down,” the Chennai hotel association said in a statement.
The group has also written to Indian Prime Minister Narendra Modi requesting intervention to ensure uninterrupted LPG supplies for the food industry.
Hospitality industry representatives in Bengaluru said the shortage began earlier this week and has already forced many businesses to ration gas usage while searching for alternative arrangements.
Media reports indicate that in Mumbai and Kolkata about 20 per cent of eateries have temporarily suspended operations due to the supply crunch.
In the western state of Gujarat, some hotels reported being forced to purchase commercial LPG cylinders on the black market at sharply inflated prices.
Long queues for refills have also been reported in Delhi.
Panic buying and black marketing have surfaced in the eastern state of Jharkhand, while protests have been reported in parts of Assam.
Deliveries have also been partially disrupted in Bihar because of reduced supply.
India’s Petroleum Minister Hardeep Singh Puri briefed Modi on the situation Tuesday.
Puri, who last week said the country was in a “comfortable position,” reportedly ordered oil refineries to increase domestic production of LPG cylinders to ease the shortage.
India consumes roughly 31.3 million tonnes of LPG annually, according to official estimates.
About 87 per cent is used in the domestic sector mainly household kitchens while the remainder is consumed by commercial establishments such as hotels and restaurants.
Energy analysts say around 62 percent of India’s LPG demand is met through imports, much of which passes through the strategic Strait of Hormuz.
Traditionally, between 85 and 90 per cent of India’s LPG imports come from Gulf producers including Saudi Arabia, Qatar, the United Arab Emirates and Kuwait.
Disruptions linked to the escalating conflict in the Middle East are now threatening to tighten those supply routes, raising concerns about prolonged shortages for India’s energy-dependent hospitality sector.
