LPG shortage fear grips region, hotels & restaurants worst hit

Eatery owners say they are bracing for closures, which can lead to job losses or ways to innovate with shrunk menus as the Union government prioritises domestic cooking gas supply to households over commercial LPG

Concerns over disruptions in global energy supplies, especially LPG due to the ongoing conflict in West Asia has begun to sting the hospitality sector across Punjab, Haryana and Himachal Pradesh, with hoteliers, caterers, and restaurant owners flagging potential difficulties if the shortage continues.

In Himachal, the refilling of 19 kg, 47.5 kg, and 425 kg commercial cylinders has been suspended for the time being. (ANI)

The eatery owners said they are bracing for closures, which can lead to job losses or ways to innovate with shrunk menus as the Union government prioritises domestic cooking gas supply to households over commercial LPG. The Centre has also invoked the Essential Commodities Act for cooking gas.

“Closure could be just days away for many establishments with eateries thinking of making do measures include low fuel menus, food that can be cooked on electrical appliances and limiting sales of everyday staples,” warned the hotel and restaurant association, Punjab.

“The supply of commercial LPG cylinders to hotels and restaurants was reportedly halted on Tuesday. Most of the restaurants and hotels usually maintain LPG stocks sufficient for five to seven days. We are hopeful that the situation will normalise within the next five to seven days and the regular supply of commercial LPG cylinders will resume,” Punjab hotels and restaurant association president, Amarvir Singh, said.

He added that many have made alternative arrangements, such as diesel stoves and commercial induction cookers, to manage their operations temporarily. “However, the smaller eateries and roadside food outlets could face significant problems if the disruption continues,” he said. Caterer Mandeep Singh also echoed similar concerns, adding that it will have an impact on the wedding industry as well. “For wedding functions, caterers arrange commercial cylinders depending on the number of guests and cooking requirements. If the supply is disrupted, we will have to rely mainly on induction plates for indoor cooking, which is not always practical for large-scale events,” he said.

Meanwhile, a leading LPG dealer in Ludhiana denied reports of any immediate shortage of commercial gas. Vinod Kumar Trehan said that consumers currently have adequate stock.

“Every commercial consumer, including hotels and restaurants, has sufficient LPG cylinders for at least five to six days. There is no immediate shortage in Ludhiana,” Trehan said

Bhupinder Singh Basant of the Basant Group of Restaurants said the shortage could severely impact the hospitality sector. Urging the government to take timely steps to protect the industry from disruptions, Basant said that since restaurants prepare food fresh for every order, they may be forced to modify their menus and temporarily drop certain dishes to manage operations amid the fuel shortage.

In Sangrur as well, several stakeholders reported gaps between demand and supply.

The Khanna Gas Agency salesman confirmed that the shortage is persistent. “Typically, we deliver 400 to 500 cylinders per day; the current supply is failing to meet these requirements,” he said.

Hotel and restaurant owners in Amritsar are also feeling the heat of the shortage.

“Supply of LPG is being affected by the war. Spike has been witnessed in the booking of the cylinder. On the other side, the government has restricted rules for the cylinder booking,” said Barinder Guliani, owner of a gas agency.

Surinder Singh, president of hotel and guest houses association, Amritsar, said, “ If the government does not take necessary measures to ensure uninterrupted supply, it would be devastating for the industry. Since this evening, I have been dialling the number for booking a cylinder, but the number is not reachable.”

“The prices for commercial LPG have already risen by ₹300 to ₹400 per cylinder. This development is not good for us”, added Jatin Kumar, a restaurant owner in Amritsar.

Anshu Wadhwa, manager at a restaurant in Karnal, claimed that the supply of commercial LPG cylinders has been snapped.

“My place needs 20 commercial cylinders per month, but the supply has been restricted to one every month. I called four gas agencies, and everyone refused to supply us. It would get difficult for us as cooking everything using coal or diesel is not possible,” he added.

However, Shiv Kumar, sales officer of Bharat Gas Agency in Kurukshetra, said there was no reason to panic, and the government is making efforts to streamline distribution and eliminate ghost consumers.

Domestic consumers also claimed that the situation on the ground is chaotic. Garima Bharwaj, a teacher in Karnal, said, “If we book now, the cylinder will be delivered next month. We’re not sure what to do is we run out of gas.”

In Himachal, the refilling of 19 kg, 47.5 kg, and 425 kg commercial cylinders has been suspended for the time being.

Ashwani Bamba, president hotel association, Dharamshala, said, “The situation is grave. We are meeting the deputy commissioner seeking relaxations to exempt the small restaurants and hotels and allow them to use domestic cylinders at least to provide food to the staff.”

“There is a severe shortage. Domestic cylinder is being provided on premium, and commercial supply is stopped,” said Bamba, while adding, “We are now switching over to alternative modes of cooking like buying commercial induction plates and diesel-run bhatti. This means added investment, but this is needed for survival, so that we may slow down, but at least we are not forced to close down. Closing down would lead to the laying off of the staff.”

An LPG supplier in Shimla, who didn’t wish to be named, said, “Booking of the second domestic cylinder will be taken after 25 days for Indian Oil Corporation and after 21 days for Hindustan Petroleum. Changes have been incorporated in the software. This is being done to ration the domestic supply.”

Amritsar MP, Himachal restaurant association write to Centre

Amritsar MP Gurjeet Singh Aujla and the Federation of Himachal Hotels and Restaurant Association have submitted a representation to Union minister for petroleum and natural gas Hardeep Singh Puri, highlighting the shortage and its adverse impact on the hospitality industry.

“We also request that suitable measures may be taken to stabilise the supply chain and provide priority allocation to the hospitality sector so that hotels and restaurants can continue their services without disruption,” said Gajendra Thakur, president of the association.

MP Aujla appealed to Puri to consider granting a special exemption or priority in commercial LPG supply for Amritsar, keeping in view its religious and tourism significance.