The state government on Monday said it would immediately allocate about 20% of the state’s daily commercial LPG supply to hotels and other commercial establishments.
State Food and Civil Supplies Minister KH Muniyappa said around 10,000 commercial cylinders would be supplied daily to hotels, restaurants, industrial canteens and dhabas after discussions with oil marketing companies. This decision comes at a time when the hospitality sector is suffering from a severe supply crisis that has disrupted operations for weeks.
“On an average, about 45,000 commercial cylinders were being used by hotels in the state. After discussion with oil marketing companies today (Monday), it was decided that about 10,000 commercial cylinders could be made available to the hotel industry,” the minister said, urging companies to adapt to the lower availability.
Acknowledging that current supplies of about 1,000 cylinders are insufficient, he said the situation highlights the need to explore long-term alternatives such as solar and biomass energy.
In a statement to the legislative council, Muniyappa said the Center has approved the allocation of a total of 16,105 commercial cylinders per day to Karnataka. Of these, about 4,200 cylinders will be allocated to educational institutions, 1,200 to public sector institutions, 500 to agriculture and related sectors, while 200 cylinders will be reserved for emergency situations.
The current crisis has been linked to global unrest, as the ongoing war in West Asia has affected supply chains. In Bengaluru, the shortage has hit hotels particularly hard, with industry representatives estimating losses at around 100%. $150 crores over the last three weeks.
In a previous statement, P.C. Rao, honorary president of Bangalore Hotels Association, said the shortage, which began around March 7-8, has severely impacted day-to-day operations. “The LPG shortage that began on March 7-8 has completely disrupted the daily operations of the hotels, causing a loss of approx. $Rs 50 crore every week,” he said.
“Whereas two cylinders were available, now one cylinder can be used temporarily. The hotel industry will resume operations as soon as possible. Otherwise, we risk losing customers and facing huge financial losses,” Rao said.
Officials noted that supply levels could improve modestly following the announcement, with an expected recovery to about 50% of normal levels. Karnataka is likely to receive around 50,000 cylinders, a large share of which is expected to be destined for Bengaluru, though the exact distribution remains unclear.
Muniyappa also said that the state received a communication from the Union Ministry of Petroleum and Natural Gas after Chief Minister Siddaramaiah wrote to it regarding the shortage. A meeting was held with oil marketing companies on the same day to review the offer.
The minister urged residents to register with GAIL for piped gas connections, noting that the company currently serves about five thousand households and requires demand data to expand its network. He also warned against pressure on distributors, noting that the reservation cycle remains unchanged at 25 days in urban areas and 45 days in the countryside.
Meanwhile, the state high court refused to entertain a petition seeking uninterrupted LPG supply to hotels and restaurants. Justice Sachin Shankar Maghadom observed that this case falls within the ambit of executive power, given the global context.
“The government is doing its best. Better than other countries. The matter cannot be subjected to judicial review. I will issue an order (disposing of the petition). The courts should not interfere in all this, and that too in a war-like situation,” the judge said.
The court recorded the government’s assurances that efforts were being made to ensure equitable distribution of the cylinders, and noted that the Bombay High Court had rejected similar petitions.
