LPG crunch burns big hole, Bengaluru hotels lose Rs 150 crore

Officials indicated that around 50% of the usual LPG supply for hotels may be restored, although it is not yet clear whether the latest allocation is for Bengaluru alone or across Karnataka.
Image used for representation purposes only.
Image used for representation purposes only.(File Photo)
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BENGALURU: Bengaluru’s hotel industry has reported losses of around Rs 150 crore over the past three weeks owing to a severe shortage of commercial LPG supply since the war began in West Asia, said PC Rao, honorary president of Bangalore Hotels Association (BHA), on Sunday.

“The shortage, which began around March 7–8, has disrupted operations across the sector with weekly losses estimated at nearly Rs 50 crore,” he told TNIE. He said the crisis has forced hotels to scale down operations, trim menus and adopt alternatives such as induction stoves, diesel-based cooking systems and even firewood in some cases. Some hotels shut down operations temporarily. Popular eateries known for specific cuisines, including Chinese and biryani, were among the worst hit.

With the supply expected to partially resume from Monday, the eateries are preparing to restart full operations, Rao said. Officials indicated that around 50% of the usual LPG supply for hotels may be restored, although it is not yet clear whether the latest allocation is for Bengaluru alone or across Karnataka. The state is estimated to receive around 50,000 cylinders with Bengaluru accounting for the majority of consumption, Rao said.

Industry members are of the view that even a partial supply of one cylinder for every two cylinders previously allocated would help them manage operations temporarily. “We have to restart, otherwise we risk losing customers and facing heavy financial losses,” Rao said.

Meanwhile, the matter is also being heard in the High Court, with arguments scheduled

and authorities expected to submit details on LPG supply. Hoteliers expressed hope that the supplies will stabilise soon, enabling them to resume normal services.

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