West Asia conflict: Hotels urge govt intervention amid LPG supply crunch

Hotel associations in India, hit by a commercial LPG shortage due to the West Asia conflict, are demanding government intervention. Leaders in Karnataka and Tamil Nadu report severe disruptions and seek an uninterrupted supply for the industry.

As the ongoing West Asia conflict has brought disruptions to the global supply chain on natural gas, hotel associations and restaurants across India are also facing the brunt of low supply, asking the Central government to ensure that an "uninterrupted supply" is ensured across the industry.

Karnataka Hotels Demand Action

In Karnataka, hotel association leaders are facing problems and asking for government intervention. "We are forcing the Central government to bring the hotels under the Essential Commodities section. The government has ordered the oil companies to give commercial cylinders to health, agriculture, and education. How can hotel industry survive without cylinders? It is the main source for us," Santosh Malnad, Director Hotel Owners Association told ANI.

"They should ensure the free flow of cylinders to hotel industry, this is avery strong issue, so please interfere in this matter and make sure we get free flow of commercial cylinders. The government has cancelled the discount too, which was Rs 150 on 19 KG, and they also hiked the price of Rs 145," he added.

Shortage Hits Tamil Nadu Businesses

Tamilnadu Traders Union Federation, has raised concern over the ongoing LPG shortage affecting hotels and small food businesses across Tamil Nadu. Speaking about the issue, Vikramaraja Raja said that the traders' body has made a strong request to M. K. Stalin to intervene in the matter and urge the Government of India to resolve the gas supply shortage at the earliest.

According to him, small traders and small hotels will be affected more severely than large hotels. Due to the limited supply, several eateries in Chennai and other parts of Tamil Nadu have already started reducing items on their menus while continuing operations with the available stock.

Official Clarification on Supply

Domestic LPG cylinders continue to be supplied to households without interruption. Authorities have also extended the time limit for booking new cylinders.

RK Gupta, the National Vice President of the LPG Association, has said that there is no shortage in the supply of domestic LPG. "According to the oil companies, there is no shortage in supply. Commercial LPG cylinders have not been issued since yesterday, but an exemption has been given to hospitals and educational institutions... There is no shortage in the supply of domestic LPG," Gupta said.

Centre Announces New Priority Rules

The Central government on Tuesday announced new rules for prioritising supply of natural gas, including LPG and PNG for use across the country, keeping in mind the shortage caused by the disruption of the global supply chain amid the West Asia conflict.

"The Central Government, in order to ensure equitable distribution and continued availability of natural gas for priority sectors, considers it necessary to regulate production, sector-wise allocation and diversion of natural gas supplies, distribution, disposal, acquisition, use or consumption of natural gas, including LNG and re-gassified-LNG," the notification by the Centre read.

"The Central Government has assessed that the ongoing conflict in the Middle East has resulted in the "disruption of liquefied natural gas shipments through the Strait of Hormuz", which has led to suppliers invoking force majeure clause which would entail diversion of natural gas to the priority sectors," according to the gazette notification added. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)