Oil ministry sets up panel as commercial LPG shortage hits hospitality sector
New Delhi (PTI): The oil ministry has constituted a committee to examine supply issues after a sudden shortage of commercial LPG cylinders alarmed the hospitality sector, with restaurant associations warning that eateries could shut down within days if supplies are not restored.
As the widening conflict in the Middle East disrupted fuel lifelines, including India's LPG supplies, the government has prioritised domestic cooking gas supplies to households. This has led to supply crunch for hotels and restaurants which use market priced commercial LPG.
"For LPG supply to other non-domestic sectors, a committee of three Executive Directors (EDs) of Oil Marketing Companies (OMCs) have been constituted to review the representations for LPG supply to restaurants/hotels/other industries," the ministry said in a post on X.
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India consumed some 31.3 million tonnes of LPG annually. As much as 87 per cent of this is in the domestic sector i.e. household kitchens, and the rest in commercial establishments such as hotels and restaurants.
Of this total requirement, as much as 62 per cent is met through imports. The US and Israel attack on Iran and Tehran's retaliation has shut the Strait of Hormuz - the conduit through which India got 85-90 per cent of its LPG imports from countries like Saudi Arabia.
As alternate sources are being scouted, the limited supplies available meant the government prioritising supplies to the domestic sector, and in process the commercial establishments have suffered.
Industry sources say the disruption has already begun affecting operations in Mumbai and Bengaluru, as hotels and restaurants struggle to secure cooking gas.
Vijay Shetty, president of the India Hotels and Restaurant Association, said the shortage is spreading rapidly and could soon paralyse the sector.
While maintaining that the country has adequate fuel stocks, the ministry in recent days directed refineries to maximise LPG output by curtailing petrochemical streams and extended the LPG refill booking cycle to 25 days from 21 days.
"In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," the ministry said in the post on X.
"The ministry has prioritised domestic LPG supply to households and introduced a 25 day inter-booking period to avoid hoarding/black marketing."
Non domestic supplies from imported LPG are being prioritised to essential non domestic sectors such as hospitals and educational institutions, it said.
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Deputy CM Shivakumar slams BJP MPs for their silence on LPG shortage in India
Bengaluru (PTI): Karnataka Deputy Chief Minister D K Shivakumar on Tuesday said the shortage of LPG refills has become a serious concern in the state, amid warnings from hotel owners that they may be forced to shut down operations if supplies do not improve soon.
Speaking to reporters in Bengaluru, Shivakumar said the issue must be discussed in Parliament and urged Members of Parliament to raise the matter, as the shortage was affecting businesses and the public.
"The government must discuss this in Parliament. They should allow a discussion today... From today itself, we are facing problems. There is no stock," he said.
The Deputy Chief Minister criticised BJP MPs for not speaking about the LPG shortage despite its impact on businesses such as hotels and catering establishments.
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He noted that hoteliers have already begun limiting their operations due to dwindling supplies.
"Now, because of the gas price hike and the gas shortage, people are going on strike, but the BJP MPs are not talking about it. They raise their voice on many other issues - strangely enough - but they are silent on this," he said.
Shivakumar also pointed to the rising fuel costs, saying diesel prices had recently increased sharply, adding further pressure on businesses.
According to him, the combined impact of fuel price increases and LPG supply disruptions was affecting the hospitality sector.
He said even former Prime Minister H D Deve Gowda spoke about some of the issues pertaining to Karnataka and called for discussion.
"Deve Gowda is talking about Mekedatu and Yettinahole projects. Let him direct his party MPs to talk about this (fuel shortage) in the Parliament.
It is not right for me to launch a verbal attack on him, considering his age. Let him suggest solutions for Mekedatu and Yettinahole. Let his party MLAs talk about what their party did, and I will counter it with what we have done," Shivakumar said.
Hotel associations in the state have warned that continued supply shortages could force establishments to temporarily shut down, particularly those dependent on commercial LPG cylinders for daily cooking. The Deputy Chief Minister indicated that the issue required urgent attention at the national level, as LPG supply and pricing fall under the Centre's purview.
