LPG crisis pushes hospitality sector to brink

T'puram/Kochi: The hotel and restaurant industry bodies in Kerala have started feeling the heat of shortage of commercial cooking gas cylinders due to supply disruptions amid the continuing war in the Middle East. With some of the distribution agencies halting deliveries from Tuesday, thousands of establishments are staring at potential closure.

An emergency meeting of hoteliers, restaurants and distributors was held with the govt, in which plans and proposals were considered to meet the challenge. Restaurant owners said they may have to limit the menu, use reheating, and shift to electric stoves for cooking to meet food demand. However, a sudden shift in cooking style is not possible because the kitchens are not designed for change and also require approval from the food safety department.




Sources said distributors told restaurants, eateries and hotels that there will not be a supply of commercial cylinders once existing stock is over. A shortage is expected in two-three days across the state.

"The crisis took a turn for the worse on Tuesday. While the entire state is vulnerable, the impact is being felt acutely in major urban hubs like Kochi and Thiruvananthapuram. Many of the businesses will be forced to down shutters if the supply chain remains broken. Their stocks are depleting fast," N Abdul Razak, general secretary of Kerala Hotel and Restaurant Association (KHRA), told TOI.

He said Kochi alone houses nearly 8,000 establishments, ranging from small wayside eateries to high-end luxury hotels, while there are over one lakh establishments across the state. KHRA has submitted memorandums to the offices of the Prime Minister, petroleum minister and the chief minister to take immediate measures to face the crisis.

While eateries may shut shop, restaurants are trying to work out a system to stay afloat, as closing down will lead to loss of business and inability to pay back loans. An LPG distributor in Thiruvananthapuram said there was a huge demand for commercial cylinders in the last two days after oil companies were told not to fill commercial cylinders and to prioritise domestic LPG.

"If the hotels close down, thousands will lose jobs. It will severely affect the public, especially students, workers and patients," Razak said.

The bottling plants of three oil companies stopped filling commercial cylinders in Chennai, from where supplies come to the state. Resorts and star hotels are working to cut the menu but are worried about handling customer demand.

"As people are paying for stay and food, they may not be accommodative of a frugal menu. We are working to sensitise the guests if a situation like that arises," a hotelier said.

Meanwhile, the central govt has invoked the Essential Commodities Act of 1955 (ESMA) to ensure uninterrupted domestic cooking gas supply.

The current shortage is directly linked to geopolitical tensions affecting the Strait of Hormuz, a narrow but vital waterway through which roughly 80% to 85% of India's LPG imports pass. As the primary conduit for fuel from the Middle East, any disruption in this corridor immediately destabilizes India's energy market.