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20% eateries in Guj face closure as commercial LPG supply stalls: Hotel associations
Narendra Somani, president of the Federation of All India Caterers, said 20% of eateries in the state could close if the suspension continues
Restaurants and roadside eateries in Gujarat may begin to shut down from Tuesday as refilling of commercial LPG cylinders has been temporarily suspended for non-essential commercial establishments amid disruptions linked to the Middle East conflict, industry representatives said.
Narendra Somani, president of the Federation of All India Caterers, said 20% of eateries in the state could close if the suspension continues.
He said that in Ahmedabad alone, at least 2,000 of the nearly 20,000 eateries depend on commercial LPG cylinders and will shut starting today or two if their supplies are not restored.
“In areas like Manek Chowk and Law Garden where many of the roadside stalls run on LPG cylinders, they are likely to shut down from today as they will run out of gas supplies,” said Somani, who is also chairman of the Hotel and Restaurant Association of Gujarat.
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The National Restaurant Association of India (NRAI) has also written to the Union petroleum minister seeking continued supply of commercial LPG cylinders, warning that disruption would affect the functioning of a sector that represents more than 5,00,000 restaurants across India and provides employment to over eight million people.
A March 9 communication issued by the All India LPG Distributors Federation said supply of commercial LPG cylinders to non-essential establishments such as hotels and restaurants has been temporarily suspended due to the prevailing geopolitical situation arising out of the war.
Distributors were advised to prioritise supply only to customers falling under essential categories and ensure uninterrupted service to domestic LPG consumers.
Under the government’s gas allocation framework, domestic PNG households and CNG stations fall under the highest priority category, followed by fertiliser plants and city gas supply to industries. Industrial and commercial consumers—including restaurants and hotels—fall under a lower priority category and their supplies can be curtailed when gas availability is constrained.
The shortage has been linked to disruptions in global gas supplies following the ongoing conflict in the Middle East involving the United States, Israel and Iran.
However, restaurants connected to piped natural gas networks in Ahmedabad have not faced supply disruption so far.
Dilip Thakkar, owner of Gopi Dining Hall and co-chapter head of the National Restaurant Association of India, said most hotels and restaurants in the city receive piped natural gas from Adani Gas.
“In Ahmedabad city, the hotels and restaurants are connected to piped natural gas supplied by Adani Gas and so far there has been no disruption in supply,” said Thakkar.
“For outdoor catering and small stall owners, operations depend on commercial cylinders.
There is a shortage and difficulty in refilling, and there are reports of cylinders being sold in the black market. So far the restaurants in Ahmedabad are largely open and operating unlike in cities such as Bangalore and Mumbai,” he said.
Gujarat Gas Limited, a subsidiary of Gujarat State Petroleum Corporation (GSPC), declared force majeure on March 4 and began restricting supplies to industrial consumers from March 6 under Minimum Guaranteed Offtake contracts.
A GSPC official familiar with the matter said priority is being given to domestic piped natural gas households and CNG stations.
“For industrial customers, including in Morbi, we have issued force majeure notices due to severe R-LNG constraints. We are engaging with them to find workable arrangements and implement restrictions case-by-case,” the official said.
Other city gas distributors have also introduced volume reductions and price adjustments for non-priority users, though household PNG and vehicle CNG supplies remain largely unaffected.
The Union government on March 5 also directed state-owned refiners to prioritise LPG production to ensure domestic cooking gas availability.
Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp were instructed not to divert propane and butane streams to petrochemicals or other uses and to ensure continued supply for public sector LPG bottling plants and domestic cylinders.
