What hotel associations said
Several hotel associations across India have reported a shortage of commercial LPG cylinders, just days after commercial and domestic LPG cylinder prices were increased nationwide. Hotel associations in Bengaluru and Chennai reported the unrest, warning that restaurants in the two cities concerned may have to halt operations on Tuesday, March 10, if LPG supplies are not restored.
This development comes amid rising global oil prices due to the ongoing conflict between Iran and the United States, which has sparked unrest across the Middle East. This situation has raised fears of a further rise in energy prices, given Iran’s targeting of the Strait of Hormuz, a major shipping lane through which a fifth of the world’s oil is transported.
The Chennai Hotels Association and Bangalore Hotels Association on Monday claimed that commercial LPG supply to restaurants in both cities has taken a huge hit. “Due to the disruption of gas supply, hotels will be closed from tomorrow,” the association said in Bengaluru, as reported by news agency PTI.
The Chennai Hotels Authority issued a statement seeking Prime Minister Narendra Modi’s intervention in the matter. The authority said in a tweet on Twitter: “Commercial gas distributors have completely stopped supplying cylinders, as they do not have stock, and as a result, many restaurants are forced to close.”
What did the government say?
Amid fears of rising oil prices and reports of LPG shortages in hotels in India, the government issued a statement on Monday, ordering oil refineries to increase LPG production and use this additional production for domestic use.
“The Ministry has prioritized domestic LPG supplies to households and introduced a 25-day internal reservation period to avoid hoarding and black marketing,” the Ministry of Petroleum and Natural Gas said in a statement. The ministry also said that a committee has been formed to review offers for supplying LPG to restaurants.
High prices for liquefied gas cylinders for commercial use $115 and for home use $60 last week.
