Gas Supply Disruption Hits India’s Hotel and Restaurant Sector Amid Middle East Conflict
Kathmandu — Ongoing conflicts in the Middle East have disrupted the global natural gas supply chain, affecting India’s hotel and restaurant industry, with businesses now urging the central government to ensure continuous gas supply for commercial operations.
Hotel owners in Karnataka have reported operational difficulties due to gas shortages. Santosh Malnad, Director of the Hotel Owners Association, said limiting commercial gas cylinder supply has put the hotel sector in a severe crisis.
“The government has prioritized health, agriculture, and education sectors, directing oil companies accordingly,” Malnad explained. “However, running hotels without commercial cylinders is impossible, as it is our main energy source.”
Malnad has requested that the hotel industry be included under the Essential Commodities Act to guarantee regular access to commercial gas cylinders. He also expressed dissatisfaction over the removal of a ₹150 discount on 19-kg commercial cylinders and an additional price increase of ₹145.
In Tamil Nadu, the Traders Union Federation has raised concerns about LPG shortages affecting hotels and small food businesses statewide. Leader Vikramraja Raj noted that small traders and hotels are among the worst affected. Some hotels in Chennai and other regions have reduced menu offerings and are operating only based on available gas.
Domestic LPG supply, however, remains unaffected. RK Gupta, national vice president of the LPG Association, stated, “There is no shortage for domestic LPG. Commercial cylinders have not been distributed since yesterday, except for hospitals and educational institutions.”
In response, the Indian government announced new regulations for gas supply management on Tuesday. With the Middle East conflict affecting shipments via the Hormuz Strait, authorities have prioritized distribution to critical sectors and instituted guidelines for gas utilization and allocation.
Analysts warn that if the conflict continues, pressure on energy supply may increase further, potentially impacting South Asian economies.
