BENGALURU/CHENNAI, (Reuters): Restaurants and hotels across India have warned of disruptions and possible shutdowns as the war involving Iran has constricted supplies of cooking gas, forcing authorities to set up a panel to review industry requests.
The shortage follows the conflict between United States and Israel against Iran, which has halted ship traffic through the Strait of Hormuz and across the Persian Gulf. The disruption has increased energy prices and transport costs, affecting exports and output from Gulf producers such as Qatar and Saudi Arabia.
India, the world’s second-largest importer of liquefied petroleum gas (LPG), has invoked emergency powers to order refiners to increase domestic production, leaving the hospitality sector struggling to secure sufficient supplies.
Bert Mueller, founder of the Mexican food chain California Burrito, which operates more than 100 outlets across cities including Bengaluru, Chennai, Delhi and Noida, said his restaurants had limited gas reserves.“We have LPG stock for two days. We are working on contingencies,” Mueller said, adding that some outlets are conserving gas and installing induction stoves.
India’s oil ministry said it had formed a panel to review LPG supply requests from restaurants and other industries following appeals from industry bodies. The National Restaurant Association of India, which represents more than half a million restaurants, warned the government that the sector is heavily dependent on commercial LPG.In a letter to the food processing ministry, the association said any disruption could lead to widespread closures. The Federation of Hotel and Restaurant Associations of India also requested government intervention.
Indian companies have raised LPG prices for the first time in about a year as the conflict increases import costs. About two-thirds of India’s LPG consumption depends on imports.
Supplies were further affected after Qatar, the largest supplier of LNG to India, halted production following Iranian strikes on Gulf countries in retaliation for attacks by the United States and Israel.
Dwindling Supplies
In the southern technology hub of Bengaluru, several restaurant owners said deliveries had dropped sharply, raising fears that kitchens could soon stop operating.
Manish V Shetty, who runs the Udupi Food Hub restaurant chain in Bengaluru, said one of his outlets did not receive gas cylinders.“Thankfully, one of our older vendors helped us,” he said, noting that his business pays suppliers immediately rather than using credit terms. He also reported rising prices for sunflower oil used in cooking.
Restaurant owners say few establishments stockpile LPG cylinders because of safety concerns and instead rely on frequent deliveries.
Veerendra Kamat, secretary of the Bengaluru Hotels Association, said the situation was becoming serious.“Most gas companies have stopped supplying,” he said.
Ananth Narayan of the National Restaurant Association of India’s Bengaluru branch said even restaurants that have stored gas may run out within one or two weeks if supplies do not resume.
