‘Covid-19 lockdown-like situation…': Tamil Nadu restaurants fear shutdown as LPG shortage tightens

Hotels and restaurant owners in Tamil Nadu, speaking to news agency PTI about the ongoing shortage of commercial cooking gas cylinders amid the war in West Asia, said the developments are triggering memories of the Covid-19 crisis when lockdowns were imposed.

Several southern cities, including Chennai and Bengaluru, have raised concerns over a shortage of commercial liquefied petroleum gas (LPG) supplies, as the Central government has taken steps to temporarily prioritise cooking gas cylinders for high-priority sectors such as education and hospitals.

Following the Iran-Israel-US war and the disruption to major energy shipping routes, including the Strait of Hormuz, the price of LPG cylinders was increased last Saturday. Household cooking gas prices went up by ₹60, while commercial LPG cylinder rates were hiked by ₹115.

Several eateries have reduced the number of food items on their menus in order to cope with the commercial LPG crisis.

Covid-19 lockdown-like situation returning

"It is like a second COVID-19-enforced lockdown for us. We are cutting down on the usage of LPG cylinders. We have reduced the number of food items. For Dosa, tea or coffee, the stove should be receiving LPG supply non-stop. We have cut the number of items now and are providing food only in limited numbers," the chairman of a popular restaurant chain told PTI.

Responding to a query, he said, “We expect to run for one or two days with existing stock. If there is no supply of the commercial LPG cylinders, we have no other go than to close down operations. Covid-19 lockdown-like situation returning.”

At the same time, another well-known outlet of Sri Ananda in Chennai informed customers through a notice on its menu on Tuesday that the availability of food items had been significantly restricted due to a shortage of commercial LPG cylinders.

"All these days, we were operating without any crisis in LPG cylinder supply. Today, we have cut down on the list of food items offered to reduce the usage of LPG cylinders. We have stopped preparing fried rice, side dishes, and appam as these items require more LPG. We do not know how long this (supply crisis) will continue," an official said.

What has the hotels’ association asked the Centre to do?

On March 7, the Tamil Nadu Hotels Association, which represents hotels and restaurants across the State, urged the Centre to roll back its directive asking oil marketing companies to halt the supply of commercial LPG cylinders.

A day earlier, on March 6, the government exercised rarely used emergency powers to instruct oil refineries to boost LPG production in order to ensure sufficient supplies of domestic cooking gas and prevent possible disruptions arising from the escalating West Asia conflict.

What has the government said on LPG supplies?

The Ministry of Petroleum & Natural Gas announced that oil refineries have been directed to increase LPG output, with the additional production being diverted for domestic cooking gas needs.

To prevent "hoarding and black marketing", the ministry has also introduced a 25-day gap between LPG bookings.

In a post on X, the ministry said that "Non-domestic supplies from imported LPG is being prioritised to essential non domestic sectors such as Hospitals and Educational institutions,".

It further added that a panel comprising three executive directors from oil marketing companies has been formed to examine requests for LPG supply from restaurants, hotels and other industries. "For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs (Oil Marketing Companies) have been constituted to review the representations for LPG supply to restaurants/hotels/other industries," it said.