LPG shortage sparks fear of hotel closures and food price hike in Kerala


Officials say if the unrest continues due to the conflict between Iran, and the United States and Israel, resulting in a further spike in global oil prices, the crisis could soon spill into household kitchens. (file)
| Photo Credit: K.K. MUSTAFAH

The shortage of commercial LPG cylinders is threatening to severely impact the hospitality sector in Kerala, along with other key sectors, with the crisis likely to force many establishments, including catering units and hotels, to shut down within days if the situation continues.

Although CNG is currently available, the situation appears precarious and can disrupt a section of public transport as a significant number of vehicles rely on CNG. If the shortage affects only commercial kitchens now, it is likely to spill over to households soon, as cooking gas stocks are rapidly depleting across the country, including Kerala.

The crisis worsened just a few days after the prices of both commercial and domestic gas cylinders were increased nationwide by public sector companies.

Speaking to The Hindu, Shahul Hameed, general secretary of All Kerala Caterers’ Association, who runs Foodwey Catering in Kozhikode, says a good number of caterers in Kerala may soon down their shutters due to the severe shortage of commercial cooking gas. “For instance, we need around seven cylinders per day. However, we received hardly two cylinders in the last two days,” he says.

Swami S., owner of Swami S. Catering in Thrissur, says: “We are engaged in the vegetarian catering business, and Hindus typically stay away from conducting weddings during the Malayalam months of Kumbam and Meenam as these are considered inauspicious. Additionally, since it is the holy month of Ramzan for Muslims, marked by a period of fasting, business is relatively down in March, and we are managing with the available stock of gas cylinders along with firewood stoves. However, things will go out of hand if the situation persists,” he says.

Bound by limitations

Hotel and restaurant owners say they face certain limitations when it comes to seeking alternatives at the eleventh hour of a crisis.

According to B. Vijayakumar, owner of Nook Restaurant in Thiruvananthapuram and district secretary of Kerala Hotel and Restaurant Association, switching to electric or other alternatives requires time as well as investment. “The increased charges for commercial cooking gas have already been burning a hole in the pockets of hotel owners. In short, if the crisis persists, the closure of hotels along with a steep hike in food prices can be expected,” said Mr. Vijayakumar.

For the time being, flow of natural gas, which powers a section of public vehicles such as autorickshaws and taxis in Kerala, has not been affected significantly. However, the situation can go out of control, as the country produces only around 20% of the total hydrocarbons required for cooking gas and other fuels, says a senior officer with the Oil and Natural Gas Corporation (ONGC).

Although India has substantial natural gas reserves in regions such as Assam and the Krishna-Godavari (KG) basin, the country has yet to fully tap new domestic reserves due to the huge capital expenditure required. As a result, it continues to depend on imports from different parts of the world, mainly West Asia.

Officials said if the unrest continues due to the conflict between Iran, and the United States and Israel, resulting in a further spike in global oil prices, the crisis could soon spill into household kitchens.

The Centre has now increased the minimum waiting period for LPG cylinder booking to 25 days, up from 21 days, to prevent hoarding amid the West Asia conflict.

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