Kitchens going cold: LPG shortage pushes Indian hospitality to the brink

KOCHI/NEW DELHI: Disruptions in the global supply chain, driven by the ongoing conflict in the Middle East, have significantly impacted the availability of cooking gas across India. With the reduction in fuel production in Gulf nations and the subsequent obstruction of shipping routes through the Strait of Hormuz, oil marketing companies have faced severe operational challenges.

Regulatory measures and domestic prioritisation

To safeguard domestic energy security, the central government has invoked the Essential Commodities Act. This move ensures that available natural gas is prioritised for critical sectors, including Liquefied Petroleum Gas (LPG) production, Compressed Natural Gas (CNG), and piped cooking gas.

Key adjustments to the distribution framework include:

• Refill Intervals: To prevent hoarding and manage demand, the minimum booking interval for domestic LPG cylinders has been extended to 25 days.
• Commercial Restrictions: The supply of commercial LPG cylinders is now strictly restricted, with priority being granted exclusively to essential services such as hospitals and educational institutions.
• Production Oversight: A committee comprising executive directors from Bharat Petroleum (BPCL), Indian Oil (IOCL), and Hindustan Petroleum (HPCL) has been constituted. This body is tasked with reviewing commercial supply requests and maintaining sufficient stock levels for essential sectors.

Government response and strategic planning

A high-level meeting, chaired by Prime Minister Narendra Modi and attended by Petroleum Minister Hardeep Singh Puri and External Affairs Minister S. Jaishankar, addressed the current fuel shortage and rising prices. The discussions focused on resolving supply chain bottlenecks and exploring alternative procurement options for oil and natural gas, including potential imports from Russia. Furthermore, the government is examining economic measures to stabilise prices and minimise the burden on the general public.

Impact on the hospitality sector

The hospitality industry is experiencing substantial difficulties due to the suspension of commercial LPG supplies. Representatives from the Kerala Hotel and Restaurant Association, including President G. Jayapal and General Secretary N. Abdul Razak, have urged the authorities to recognise cooking gas as an essential commodity for the restaurant sector, emphasising the necessity of maintaining supply for these establishments.

Distribution priority hierarchy

The current distribution strategy adheres to the following priority list:

1. Domestic cooking gas for households
2. Piped LPG networks
3. CNG distribution for transport
4. Commercial LPG for essential services (hospitals, schools, etc.)

Despite these measures, sectors such as hotels, restaurants, and fertiliser production continue to face significant obstacles in maintaining regular operations.