Mumbai’s hotels and restaurants are on the verge of closure due to a critical commercial LPG shortage, threatening the hospitality industry and tourism across India.
Illustration: Uttam Ghosh
Key Points
- Mumbai hotels and restaurants are facing potential closures within two days due to a severe shortage of commercial LPG cylinders.
- The LPG shortage is attributed to revised government priorities for allocating domestically produced natural gas, impacting the hospitality sector.
- Similar LPG supply disruptions are reported in Pune, Aurangabad, Nagpur, Delhi, Karnataka, Telangana, and Andhra Pradesh.
- The Federation of Hotel and Restaurant Association of India (FHRAI) is urging the government to restore uninterrupted commercial LPG supply to avoid widespread closures.
- The oil ministry has formed a committee to investigate the LPG supply issues and find a resolution for the hospitality sector.
Hit hard by the shortage of commercial LPG cylinders, hoteliers’ body on Tuesday said large number of hotels and eateries in Mumbai will have to shut operations in the next two days if the situation is not resolved.
Similar disruptions are also reported from Pune, Aurangabad, Nagpur, Delhi, Karnataka, Telangana and Andhra Pradesh, Pradeep Shetty, Vice President, Federation of Hotel and Restaurant Association of India (FHRAI) said.
Amid the West Asia crisis, the government has revised the priority order for allocating domestically produced natural gas, placing LPG production alongside CNG and piped cooking gas at the top. This has led to supply crunch for hotels and restaurants which use market priced commercial LPG.
Widespread Disruptions and Potential Closures
The shortage of commercial LPG has become extremely serious over the past week, with intermittent disruptions escalating into a near complete halt in supply in several regions since Monday, said Shetty, who is also the Spokesperson, Hotel and Restaurant Association (Western India) – HRAWI.
“We are already receiving reports of severe shortages from cities including Mumbai, Pune, Aurangabad and Nagpur, while similar disruptions are being reported in states such as Delhi, Karnataka, Telangana and Andhra Pradesh. If the situation does not improve within the next two days, nearly 50 per cent of hotels and restaurants in Mumbai may be forced to temporarily shut operations depending on the stock of cylinders they currently have,” he cautioned.
This will especially affect international tourists. Also, smaller and medium-sized eateries will be the first to be impacted, as they typically operate with limited reserves, Shetty stated.
Challenges with Alternative Cooking Methods
He observed that while alternatives such as electric or induction-based cooking are gradually emerging, they are not yet viable for most commercial kitchens that rely on high-intensity, fast-paced cooking methods typical of Indian cuisine.
“Transitioning to such systems also involves significant cost and infrastructure changes. At present, the industry has no practical alternative and urgently requires restoration of uninterrupted commercial LPG supply to ensure that hotels, restaurants and food service establishments can continue operating without disruption,” Shetty said.
Government Intervention
Menwhile, the oil ministry has constituted a committee to examine supply issues after a sudden shortage of commercial LPG cylinders alarmed the hospitality sector, with restaurant associations warning that eateries could shut down within days if supplies are not restored.
