CHENNAI: Hotels and restaurants in the state have warned they may be forced to shut operations if supplies of commercial LPG cylinders, hit by the war in West Asia, are not restored soon. The industry also sought clarity from the Centre on the recent order prioritising domestic cooking gas.
M Venkadasubbu, president of Tamil Nadu Hotels Association (TNHA), said the sector currently has commercial LPG stock to operate for only about two more days. “We are able to manage with the stock available for the next two days,” he said, adding after that, if the government is not able to supply cylinders, they will have no option but to close hotels. He added establishments may initially cut down operating hours and reduce menu items to conserve available LPG supplies.
The industry’s concerns follow an order issued by the Ministry of Petroleum and Natural Gas under the Essential Commodities Act, 1955 prioritising LPG distribution for domestic consumption. Venkadasubbu said at present LPG supplies are being directed mainly to essential sectors such as households and institutional kitchens including colleges. “Restaurants should also be treated as an essential service because millions depend on them for daily food,” he said.
The association warned hotels closing enmasse could disrupt demand for agricultural produce and affect multiple supply chains linked to the food service sector. The industry body has appealed to the Centre to direct state-run fuel retailers to continue supplying commercial LPG to the hospitality sector to avoid disruption to food services and employment.
Madurai District Hotel Owners’ Association president KL Kumar said, “There is a panic-like situation in Madurai district. Though we don’t face a condition like that in Bengaluru city, we, in Madurai, have stock of commercial LPG cylinders only for 3-4 days. After this, there is no confirmation from large petroleum companies on how to deal with future bookings. We are in a state of fear, not just from a commercial aspect, but from a psychological level as well, since we cannot shift to firewood immediately.”
PK Ganesh, the owner of Ganesh Express Catering in Coimbatore said so far, he has not experienced any shortage in commercial cylinders. “However, soon they can expect the shortage,” said Ganesh who is also the PRO of Tamil Nadu Catering Owners Association.
Following a directive from the Union Ministry of Petroleum and Natural Gas, the supply of commercial LPG cylinders was restricted across Chennai on Monday. While the exact extent of the cut could not be ascertained, supplies to hotels and other establishments have been reduced from the cylinder bottling plants in Manali and other locations.
Sources from the Indian Oil Corporation Limited, the state-level coordinator for the oil industry in the state, confirmed curbs have been imposed on the supply of commercial cylinders. However, officials maintained the priority is to ensure uninterrupted supply to domestic consumers. “We are prioritising LPG supply for domestic consumers. The supply of commercial cylinders has not been stopped, but certain restrictions have been imposed,” a senior official told TNIE.
A few days earlier, the Ministry of Petroleum and Natural Gas had directed oil companies to reduce the supply of commercial cylinders in order to ensure regular availability for domestic consumers.
(With inputs from Madurai)