Several hotels, restaurants continue to operate under strain amid commercial LPG supply crisis
Bengaluru (PTI): Several hotels and restaurants in the city on Tuesday continued to operate under strain with the commercial gas cylinders already they have and said they will be forced to shut down once the stock is exhausted.
They expressed hope that the supply issue will be resolved at the earliest.
The development comes following a sudden and total halt in the supply of commercial gas cylinders, amid the rising energy costs and supply constraints caused by the West Asia conflict, according to the Bangalore Hotels Association.
"Since the gas supply has stopped, the hotels will be closed from March 10," the association had said in a release earlier.
However, some hotel owners said operations are currently continuing with constraints, with some establishments stopping the preparation of certain items that consume more gas to conserve fuel and stretch their existing stock for a longer period.
P C Rao, Honorary President of the Bangalore Hotels Association, told PTI that the decision of closure depends on individual hotels. They will operate as long as they have gas. If there is no gas available, then there is no other option. Then it will automatically close.
"Till the last drop of gas available, we will cook and serve," he said.
When asked if there would be a complete shutdown of hotels and restaurants today, he said, "No, no. Some people (hotels) still have stock. Some others are waiting, hoping there might be some supply. It is not possible to arrange any alternative immediately."
"Let us see. We are hoping for the best, because if we close it will be difficult for us and for customers as well," he said.
Rao said that some hotels have stopped preparing items like poori because they consume a lot of oil and gas.
"We are trying to save gas. For example, if we have five cylinders and normally need three cylinders per day, we try to stretch those five cylinders to last four days. We are making such efforts," he said.
Expressing hope that the issue will be resolved soon, he said, "It has to be resolved, because this is not just a state subject--it concerns the whole country. That is why it must be resolved."
Hotelier Chandrashekhar Hebbar said the situation has become serious due to the shortage of commercial cooking gas, forcing hotels to consider shutting down.
"It has reached that level now -- to the point where closure is being considered. For now, everyone is trying to manage by reducing gas consumption and adjusting things, but that can be done only for a day or two. After that, it will not be possible," Hebbar told PTI.
He said several items were already being curtailed to conserve gas. "We have stopped serving some items. Things like poori have been controlled. The government must take immediate action on this," he added.
Hebbar cautioned that the closure of hotels would affect not only customers but also workers and catering services.
"We have a lot of catering work also, especially with many weddings happening now. All the orders have already been taken, and there is no alternative at present," he said.
He urged the authorities to intervene quickly to resolve the issue and ensure a regular supply of cooking gas to the sector.
Noting that the supply of commercial gas cylinders stopped on March 9, the hotel association said in the release on Monday, since the hotel industry is an essential service, common people, students, and medical professionals, who rely on the hotels for daily meals, will be affected.
"In addition, our hotel industry will also face difficulties until the gas supply returns to normal," it added.
The association said oil companies had guaranteed an uninterrupted gas supply for 70 days, making the sudden stoppage a "big blow" to the hotel industry.
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Rupee plunges 28 paise to settle at 93.44 against US dollar
Mumbai (PTI): The rupee declined 28 paise to close at 93.44 against the US dollar on Tuesday, weighed down by a steady American currency and volatile crude oil prices amid uncertainties over the progress of West Asia peace negotiations.
Positive domestic equity markets failed to boost local currency, which also had some impact of the Reserve Bank's latest move to ease curbs on speculative bets in non-deliverable forward markets, forex analysts said.
The Reserve Bank on Monday partially withdrew directives taken on April 1 to curb excessive speculation in the rupee. The banking regulator had capped the net open positions in non-deliverable forward markets at USD 100 million, mandating banks to comply by April 10.
Under revised directives, authorised dealers or banks can resume offering non-deliverable derivative contracts involving INR to resident or non-resident users, but must comply with certain restrictions on related-party transactions. Also, the USD 100-million cap in net open position is still effective.
At the interbank foreign exchange market, the rupee opened at 93.25 and fell to an intra-day low of 93.63 before ending the session 28 paise lower at 93.44 against the greenback.
On Monday, the rupee settled with a loss of 25 paise at 93.16 against the US dollar. The currency had gained 47 paise in the preceding two sessions.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said the rupee fell on uncertainty over US-Iran talks and a surge in crude oil prices. A strong dollar also pressured the rupee; however, positive global markets cushioned the downside.
"Traders may take cues from retail sales and ADP employment change data from the US. USD-INR spot price is expected to trade in a range of Rs 93.30 to Rs 93.90," Choudhary said.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said the rupee traded weaker as recent RBI adjustments and partial rollback of earlier currency-support measures added pressure on the local unit.
"At the same time, the dollar remains steady while crude and gold are relatively stable, with markets closely watching the outcome of US-Iran ceasefire developments expected tomorrow. The rupee is likely to remain highly event-driven, with direction dependent on geopolitical clarity and RBI stance," Trivedi said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.19 per cent to 98.09.
Brent crude, the global oil benchmark, was trading 0.70 per cent down at USD 94.81 per barrel in futures trade.
Analysts attributed the volatility in crude prices to persistent worries over disruptions of supplies of oil from the Strait of Hormuz. Also, the ceasefire agreement between the United States and Iran is scheduled to expire on Wednesday.
In a latest development, Iran's chief negotiator on Tuesday said Tehran would not negotiate in the face of threats, while US President Donald Trump hinted that he was in no rush to end the conflict with Iran.
In the domestic equity markets the 30-share Sensex rose 753.03 points, or 0.96 per cent, to settle at 79,273.33, while the Nifty rose 211.75 points, or 0.87 per cent, to 24,576.60.
Foreign Institutional Investors offloaded equities worth about Rs 1,918.99 crore on Tuesday, according to the exchange data.
