LPG cylinder SHORTAGE: 20% of hotels, restaurants closed in Mumbai due to disruptions in commercial cylinder supply

Nearly 20% of hotels and restaurants in Mumbai have shut down so far due to disruptions in commercial LPG supply.

LPG cylinder SHORTAGE: Amid the disruptions in the supply of commercial LPG cylinders, around 20 percent of the hotels and restaurants have been closed down in India’s commercial capital Mumbai, the city’s hotel and restaurant association AHAR informed on Tuesday. The association warned that 50 percent of the hotels in the maximum city are on the brink of shutting in a few days if the LPG gas supply does not improve in the next one or two days. The AHAR said that how many restaurants remain open will depend on the LPG cylinders’ stock currently available with individual establishments.

What Did The AHAR Say?

“If the situation continues like this, nearly half of Mumbai’s hotels could shut down in the coming days,” the association said.

The association clarified that it has not taken any official decision to close hotels and restaurants collectively. The decision to keep restaurants open or partially close will depend on the owners and the availability of LPG cylinders.

LPG cylinder shortage hits Mumbai, Bengaluru eateries, government responds

LPG Shortage

Notably, the warning from the association comes after the sudden shortage of commercial LPG cylinders due to the ongoing tensions in West Asia. Restaurants and eateries are totally dependent on LPG cylinders for daily cooking operations and supply disruptions can lead to halt services.

According to Industry representatives, several eateries have already started limited menus or limiting operations due to uncertainty over gas availability.

The commercial LPG shortage has been witnessed for the past two days and have started affecting the eateries across India, majorly in Maharashtra and Karnataka.

West Asia Conflict Strains Energy Markets, Hits LPG Supply Chain

The commercial LPG shortage comes at a time when the global energy markets aer running under tremendous pressure due to the ongoing conflict in West Asia. The conflict has almost halted the fuel shipments, raising concerns over supply chains.

LPG Cylinder SHORTAGE: Government Focusing On Domestic Supply

According to government sources, Centre has directed oil marketing companies, Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum to prioritise domestic LPG cylinders amid the supply crunch.

Officials said the waiting period has been extended from 15 days to 25 in order to stop hoarding by consumers.

Sources said that the Indian government is searching for new international suppliers to stabilise LPG supplies. It can import LPG gas from Algeria, Australia, Canada and Norway.

LPG Cylinder SHORTAGE: Centre Take Action

Amid growing concerns from the hospitality industry, the Ministry of Petroleum and Natural Gas informed that necessary actions have been taken to stabilise LPG supply following disruptions.

In a statement, the ministry informed that oil refineries have been ordered to increase LPG production “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,” it said.