Supply Chain Disruptions Emerge
The current scarcity of commercial LPG cylinders is a direct consequence of disruptions within the global oil and gas supply chain, exacerbated by international
conflicts. This has severely impacted non-domestic consumers, including restaurants, hotels, and industrial units, across the nation. As government policies prioritize domestic users, the supply of commercial cylinders has effectively ceased. Consequently, establishments such as hotels, restaurants, and roadside eateries are facing a critical situation, with some in Bengaluru, like small and medium-scale eateries, potentially ceasing operations as early as Tuesday due to an imminent depletion of cooking gas. According to P C Rao, honorary president of the Bangalore Hotels' Association, only a meager 10% of hotels and restaurants received any supply on Monday, igniting significant concerns about the potential breakdown of the city's essential food services.
Widespread Impact Across Cities
The issue is not confined to one region; major cities are experiencing similar hardships. In Mumbai, commercial LPG supply has been completely halted since Sunday. This dire situation is compelling hotels, restaurants, and dhabas to consider purchasing domestic use cylinders from the black market, a move deemed extremely dangerous by gas agency owners. However, another city dealer highlighted that procuring domestic cylinders through illicit channels is becoming increasingly difficult, as gas dispatch is now facilitated via OTP verification. This means that even offering premium prices will not guarantee refills for commercial establishments. Similarly, in Kolkata, hotels, eateries, bakeries, and catering services are expressing deep anxiety over the potential interruption to their daily operations. Kamal Raza, general manager (development) at The Lalit Suri Hospitality Group, indicated that the group is actively implementing measures to significantly reduce LPG consumption.
Beyond Food Service
The repercussions of this commercial LPG scarcity extend beyond the food service sector, impacting various industrial clusters. In Gujarat's Ahmedabad and Sanand, industrial zones specializing in chemicals and textiles are facing a multitude of challenges. These include a steep increase in input expenses, reduced production output, tighter availability of necessary raw materials, and a subsequent, cascading rise in overall prices, as reported by industry representatives. Chemical manufacturers have disclosed that they are receiving only approximately 40% of their required gas volumes, forcing these units to operate at substantially lower capacities. In Jaipur, industry representatives are voicing strong concerns that this policy shift will negatively affect a broad spectrum of non-domestic users. With the wedding season in full swing and tourist inflows peaking during weekends, hoteliers are experiencing significant anxiety over the prospect of a cooking gas shortage, which is causing them sleepless nights.
