Hotel associations from Tamil Nadu and Karnataka are appealing to the Central government for a stabilised supply of Liquefied Petroleum Gas (LPG), as the ongoing conflict in West Asia is disrupting the global supply chain for natural gas. Leaders from the hotel industry are expressing concern over the insufficient availability of commercial LPG cylinders, which are essential for their operations. Santosh Malnad, Director of the Hotel Owners Association, emphasised the importance of including hotels under the Essential Commodities Act to ensure their survival. He indicated that the oil companies have prioritised sectors like health, agriculture, and education for the distribution of cylinders, raising questions about how the hospitality sector can sustain itself without adequate supply.

Impact on Small Businesses

The Tamil Nadu Traders Union Federation has also voiced its concerns regarding the LPG shortage, which is adversely affecting small hotels and food businesses in the region. Vikramaraja Raja stated that the traders have formally requested intervention from Chief Minister M. K. Stalin, urging him to address the gas supply issues with the Government of India promptly. According to Raja, smaller establishments are likely to feel the impact of the shortages more than larger hotels. Many restaurants and eateries in Chennai and other cities in Tamil Nadu have begun to limit their menu options due to dwindling supplies.

Domestic LPG Supply Remains Unaffected

Despite the disruptions affecting commercial LPG, the supply of domestic LPG cylinders for households has continued without interruption. Authorities have extended the time frame for booking new cylinders to accommodate consumers. RK Gupta, National Vice President of the LPG Association, assured that there is no shortage in the domestic LPG supply. He mentioned that although commercial LPG cylinders have not been issued recently, exemptions are made for essential services, including hospitals and educational institutions.

Central Government’s Response

In response to the concerns raised, the Central government announced new regulations aimed at prioritising the supply of natural gas, including both LPG and PNG, in consideration of the ongoing global supply chain disruptions caused by the West Asia conflict. The government’s notification outlined the necessity for regulated production and sector-wise allocation to ensure equitable distribution of natural gas. It acknowledged that the conflict in the Middle East has led to disruptions in liquefied natural gas shipments through key maritime routes, prompting suppliers to invoke the force majeure clause. This situation necessitates the diversion of natural gas to priority sectors as deemed necessary by the government’s standards.

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