Panic in hotels and restaurants due to LPG shortage, 90% supply from these countries, know how big the crisis is
The LPG crisis in India has escalated due to heightened tensions in the Middle East from ongoing conflicts, resulting in long lines for cylinders and threatening the closure of many hotels and restaurants.
The ongoing wars in the US-Israel and Iran have significantly heightened tensions in the Middle East, and the effects are now spilling over into India with a severe LPG crisis. The global energy crisis has led to a situation where many cities in India are experiencing a shortage of LPG cylinders. This has resulted in long queues forming at gas distribution points, and many hotels and restaurants across various cities are on the verge of shutting down due to a lack of gas supply, which is essential for their operations.
As the situation worsened, oil companies had already announced a hike in LPG cylinder prices as of March 7. Presently, the supply of commercial LPG has been heavily curtailed, which has taken a significant toll on the hospitality sector. According to 'AHAR,' an association representing hotels, around 20% of hotels in Mumbai have already ceased operations due to the gas supply issue, and there are warnings that if the situation does not improve, up to 50% of hotels could close within the next two days.
The LPG crisis has not only impacted businesses but has also instilled a sense of panic among the general public. The situation is particularly alarming as the ramifications are visible across the country, with citizens increasingly worried about their access to essential cooking gas. Understanding the entire supply chain of LPG imports to India is crucial to grasp the reasons behind this crisis and to find effective solutions moving forward.