Eateries fear piped gas disconnection, further trim menus and operating hours

Starting March 12, gas usage in restaurants and eateries must be limited to 80% of their past six months average gas consumption, MGL said

Mumbai: Restaurant owners in the city are in a bind after Mahanagar Gas Limited (MGL) informed them via email that piped natural gas would cost higher than usual from March 9. Though the company did not specify the increased rate, it directed restaurants to trim gas usage by 20% in light of the US-Israeli war on Iran that has disrupted oil and natural gas supplies across the world.

LPG cylinders at a godown in Thane. (Praful Gangurde / HT Photo)

The email from MGL referred to the central government order dated March 9, which diverted natural gas to priority sectors.

“...please note that as per the order...there will be changes in the current price of gas due to pooling of gas. We would inform you about the details of the same as and when we are informed by our gas suppliers / government and gas drawn with effect from today will incur such additional financial implication,” the email said.

Starting March 12, gas usage in restaurants and eateries must be limited to 80% of their past six months average gas consumption, MGL said.

“Please note that gas drawn above the threshold volume will attract additional charges including disconnection without any further notice to you,” said the statement, which HT accessed.

As HT reported on March 15, the email prompted restaurants to switch to alternate fuel sources such as charcoal, induction cooktops and firewood, subject to availability. At permit rooms and bars on Sunday, patrons were largely being served dry snacks and tandoor items cooked over charcoal, and a limited number of menu items were prepared in-house.

A good way for restaurants to reduce gas usage is by trimming the menu or reducing operational hours, said Vijay K Shetty, President, Indian Hotel & Restaurant Association (AHAR).

”Revenue of restaurants has dipped by at least 20-30% since the crisis started,” Shetty said.

Former AHAR President Sudhakar T Shetty and owner of Gopalkrishna Veg Restaurant in Andheri East said that although the central government had allocated to commercial establishments 20% of the average monthly supply of LPG cylinders, it hasn’t percolated down to the agency level yet.

“We continue to face shortages,” Shetty said.

Later this week, restauranters from the city plan to reach out to the Ministry of Food, Civil Supplies and Consumer Protection to voice their concerns.