After there was an unexpected interruption to the supply of commercial liquefied petroleum gas (LPG) cylinders, hotels and food service operations throughout Bengaluru are cautioned about possibly being closed citywide. According to the Bangalore Hotels Association, several hotels have no means of cooking food in their kitchens because they have no access to commercial cooking gas, and therefore are starting plans to close their businesses on March 10th.
Most commercial kitchens or food service operations in Bengaluru rely on LPG for their primary fuel source. Due to the sudden reduction of available supplied cylinders, the hospitality industry is in operational turmoil, and they increasingly have had to depend on consistent deliveries of LPG so that they can keep their kitchens opening each day.
The Bangalore Hotels Association is representing thousands of restaurants and hotels that are requesting appropriate action by the central government and within the oil industry to immediately restore the supply of LPG. The Bangalore Hotels Association indicated that it came as a shock to them that there was a stoppage since oil companies had previously guaranteed hoteliers that they would have sufficient cooking gas for 70 days.
The representatives of the industry alluded that if the LPG supply did not return quickly, hotel operators will have no choice but to close or limit their food preparation operations. The association’s leadership indicated that they have contacted their Union Ministers and local Members of Parliament on behalf of their membership to request immediate intervention to remedy the current crisis.
Essential Service at Risk
Operators of restaurants emphasized that the hospitality industry provides a necessary service, particularly in Bengaluru, a city where many rely on affordable cooked meals away from home. Students, people working at offices, elderly people, and patients in hospitals are extremely dependent on small cafes and hotels to provide them with their daily meals.
For that reason, if these establishments stay closed for a prolonged period of time, it would disrupt access to food for many thousands of people, including people who are living in hostels; who are working late hours in the technology industry; or who are passing through the city.
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Impact Already Seen Throughout the City
Many restaurant owners are already facing serious challenges in obtaining commercial LPG cylinders for cooking. Reports estimate that a number of businesses have been unable to get their normal supply of LPG from their distributors, which is causing them to reduce their menus and potentially close down temporarily.
In addition, LPG cylinders are reportedly being sold on the black market at significant mark-ups—up to ₹2,500 for one cylinder as opposed to the official price of approximately ₹1,958. Even at those prices, some restaurants are unable to find gas available for purchase, compounding the crisis.
Global Crisis Behind Local Shortage
Geopolitical conflicts in West Asia are causing a disruption to LPG supplies globally, including India. The closure of important shipping lanes and problems with exporting LPG from the Gulf, where India gets the majority of its LPG supply, is beginning to impact the amount of fuel that is imported into India.
Since India imports most of its LPG, any disruption to global transportation systems can have a significant and immediate impact on the availability of LPG locally. Therefore, the government has begun prioritising the delivery of LPG to domestic customers (households) and for “products and services of social importance” (e.g., hospitals, schools, etc.).
Government Actions and Industry Requests
To address this growing supply issue, the Ministry of Petroleum has directed all domestic refineries to increase production of LPG to ensure stability in supply. In addition, new regulations were enacted to increase the timeframe between domestic cylinder bookings than previously required to mitigate against hoarding.
While the hotel and restaurant industry is hopeful that these measures will ease the shortage of LPG, industry representatives have indicated that they do not believe that these measures will have an immediate effect on those impacted by the LPG shortage (commercial businesses). The hospitality industry warns that if the supply shortage continues over the next few days, many food establishments will close, impacting jobs and the food network in the city.
Uncertain Days Ahead
Currently, hotel proprietors in Bengaluru express unwillingness to close their establishments unless absolutely necessary, but could not predict their future direction if the natural gas shortage continues. Given that the restaurant industry in Bangalore is vibrant and employs thousands of people, as well as produces millions of meals every day; many have expressed hope that this matter will be resolved quickly before there is a total shutdown of the hotel industry in Bengaluru.
