Kochi: Over 100 hotels in Kochi have suspended operations. This comes as a crippling shortage of commercial Liquefied Petroleum Gas (LPG) cylinders paralyzes Kerala's hospitality sector. Industry bodies warn that nearly 40% of hotels statewide may be forced to close their doors if the crisis persists.
The central government's directive to prioritize domestic LPG production, diverting crucial chemical streams to household cylinders, has effectively halted the primary supply source for commercial establishments. This shift, stemming from global disruptions in West Asia, has created a severe deficit for businesses relying on commercial-grade gas.
Many eateries, unable to secure commercial LPG, are scrambling to adapt. Some have resorted to wood-fired stoves, leading to a significant surge in firewood prices. Others are altering their menus, suspending popular fresh-cook items like dosa and appam in favor of dishes that can be prepared in bulk. The crisis also impacts large-scale events, with caterers warning of potential shutdowns as the wedding season approaches. Schools, too, are feeling the pinch, with some reverting to firewood for midday meal programs.
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governmental response and market disruption
"So far, no malpractice has been detected," stated S.R. Smitha, district supply officer. This remark comes amidst widespread concern, with businesses noting a drastic reduction in cylinder deliveries. One establishment, which previously received up to eight loads in six weeks, is now managing with only three.
The Kerala government has appealed to the Center to increase the state's allocation of non-domestic LPG cylinders, currently capped at 20% of the total. Meanwhile, a grievance-redressal committee has been formed at the national level to examine requests from non-essential commercial consumers. However, concerns linger that the shortage could eventually extend beyond commercial kitchens to household supplies as overall gas stocks dwindle.
background: a tangled supply chain
The current LPG shortage is attributed to a confluence of factors, primarily the ongoing West Asia conflict, which has disrupted global oil and gas supplies. Compounding this is a domestic policy shift prioritizing domestic LPG over commercial use. This recalibration of production, mandating oil refining companies to maximize output of specific chemical streams for LPG production, has squeezed the supply available for businesses. These businesses, unlike households, do not utilize subsidized 14.2kg domestic cylinders. The cascading effects are palpable, impacting not just hotels and restaurants but also potentially sectors like public transport reliant on CNG.
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