Restaurant and hospitality industry bodies have written to the Ministry of Petroleum and Natural Gas (MoPNG) seeking urgent clarification on commercial LPG supplies, warning that shortages could disrupt food services and force restaurants to shut operations.
The National Restaurant Association of India (NRAI) said the industry is heavily dependent on commercial LPG cylinders for daily operations and any disruption could have severe consequences for the sector.
“The restaurant industry is predominantly dependent on commercial LPG for operations. Any disruption will lead to a catastrophic closure of majority of restaurants,” the association said in a communication to the ministry.
The industry body said suppliers have informed several restaurants that commercial LPG cylinder supplies could be stopped, triggering uncertainty across the sector.
“Supply of food is an inescapable essential service as identified during COVID lockdowns,” NRAI said, urging the government to ensure sustained supply of commercial LPG cylinders to the restaurant industry to maintain business continuity and food availability.
Industry warns of supply crunch
Industry representatives told CNBC-TV18 that the sector is already facing a “massive short supply of commercial LPG,”
According to the NRAI, existing supplies may last barely a week if the disruption continues. “Supply can’t go beyond a week,” industry representatives said, adding that restaurants may be forced to shut operations or curtail their menus if supplies do not normalise.
“If restaurants have alternatives they may cut down menus, otherwise they may have to shut down.”
Hospitality bodies seek urgent clarification
The Federation of Hotel and Restaurant Associations of India (FHRAI) has also written to the Petroleum Ministry requesting an urgent clarification following a ministry circular issued on March 5.
In its letter, the federation said the absence of a formal clarification has created confusion among distributors and hospitality establishments.
“Currently, several distributors are withholding supplies, citing the restrictive language of the 5th March order,” the federation said.
While the industry has learnt informally that the order may be under revision, the lack of an official notification is disrupting supplies on the ground.
“We most respectfully request the government to issue a formal clarification confirming that no such restrictions apply to the hospitality and food service sectors,” the association said.
FHRAI also urged the government to issue a clear mandate to oil marketing companies to ensure seamless distribution of commercial LPG cylinders.
Regional industry groups raise alarm
The Bangalore Hotels Association said the supply of gas cylinders for commercial use had already been stopped, raising concerns about the impact on businesses and consumers who rely on restaurants for daily meals.
“The supply of gas cylinders for commercial use has been stopped from today. Since the hotel industry is classified as an essential service, the common people, senior citizens, students, medical and other people who depend on it will face difficulties in their daily meals,” the association said.
The group added that the situation could force hotels to shut operations if supplies are not restored quickly.
“Hotels will be closed from tomorrow due to the gas supply being cut off,” it said, urging the government and concerned ministers to intervene and restore normal supplies at the earliest.
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