The ongoing conflict involving Israel, United States and Iran has begun affecting domestic supply chains, with disruptions in commercial LPG supply hitting the hotel and restaurant sector in Maharashtra. Hoteliers have begun adopting menu rationing, slow cooking, and purchasing gas cylinders from the black market.
In Maharashtra, around 20% of hotels and restaurants in Mumbai have shut down, with associations projecting that nearly 50% of outlets in the city could close within two days if the situation does not improve. “One more day, the percentage will increase. We understand the reason but instead of blanket stoppage, the supply should continue for at least 25%, so the hotels can survive somehow,” a representative of the Indian Hotel and Restaurant Association, the top body for the hospitality trade in the State, said.
India’s current natural gas supply crunch is likely to be short-lived as the prevailing higher prices right now make imports from distant sources such as Norway and the U.S. economically viable, according to government sources. However, such shipments typically take longer to arrive, meaning the country could face a shortage in the interim, they said.
Requesting anonymity, an official said India’s LPG output has increased by 10% after the government decided to prioritise supplies to households over industry users. On March 5, the Ministry of Petroleum and Natural Gas (MoPNG) asked all oil refining companies to maximise production, directing that all propane and butane produced, recovered or otherwise available be utilised for LPG output.