LPG Crisis in Bengaluru: Commercial Cylinders Hit Rs 4,000 on Black Market; Hotels Face Shutdown

The ongoing war in the Middle East has messed up the supply of commercial gas cylinders in Karnataka. Now, hotels across the state, including about 30% in Bengaluru, are staring at a possible shutdown.

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Bengaluru Hotels Face Shutdown Amid Commercial LPG Cylinder Shortage

The Middle East war has badly hit commercial cylinder supply in Karnataka. This means about 30% of Bengaluru's hotels and many others across the state might have to shut down from Wednesday. It's not just hotels—marriage halls, PGs, and caterers are also in a fix. Even gas-powered autos are affected, with some LPG stations in the city already closed on Tuesday.

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The Bengaluru Hotels Association is furious because commercial cylinders weren't supplied properly on Monday or Tuesday. The industry now fears the situation will get much worse from Wednesday. Kalyana Mantapas, caterers, and PGs are also struggling without gas. Some hotels were even spotted using old-school firewood stoves to cook.

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To tackle the gas trouble, the central government has brought in the Essential Commodities (EC) Act on Tuesday. This move is to make sure the cooking gas supply isn't disrupted by the Middle East conflict. The government has clearly directed all refineries and petrochemical plants to boost LPG production and use hydrocarbon gas for it.

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India imports 60% of its LPG, and 90% of that comes from Gulf countries like Qatar, UAE, and Saudi Arabia. This gas has to pass through the Strait of Hormuz, which is now blocked due to the war. Plus, demand from other countries has shot up. Finding new routes is tough, expensive, and takes more time. Government sources say a 3-member committee has been set up to handle complaints from restaurant associations.

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The gas crisis is hitting hotels in Delhi, Mumbai, and Odisha, too. Hotel owners across India, including in Maharashtra, Karnataka, and Tamil Nadu, have warned the government to solve the issue fast, or they'll have to shut shop. In Puducherry, the shortage is so bad thatthey've stopped selling tea and coffee. Meanwhile, hotels in Tamil Nadu have cut down their menus.

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Following the oil crisis, Prime Minister Narendra Modi held an urgent meeting with top ministers on Tuesday. According to sources, he has instructed them to reduce the shortage of both oil and LPG on a war footing.