Shivamogga Hotels Close March 12 Due to No LPG Gas Supply

Nearly 90% of Shivamogga's 500 hotels and restaurants might close starting March 12 due to a lack of commercial LPG gas cylinders. This is a big problem for food businesses.
By Newsroom | Business, Karnataka |

Widespread Closures Looming

Shivamogga, Karnataka – A substantial number of eateries in Shivamogga are bracing for operational shutdowns beginning March 12, citing a severe disruption in the supply of commercial LPG cylinders. Nearly 90% of the city's approximately 500 hotels and restaurants are expected to either cease operations or drastically limit their menus. The Shivamogga City Hotel Owners’ Association, representing around 200 members, convened on March 11 to deliberate the escalating crisis.

LPG cylinder shortage: Nearly 90% of hotels in Shivamogga to close down operations on March 12 - 1

"Gas agencies have stopped supplying commercial cylinders."

Reports indicate that food businesses in Shivamogga currently possess only a limited reserve of gas, with most having between five to six days of stock remaining. This situation has prompted significant concern among hotel owners, leading to the drastic measure of potential closures.

LPG cylinder shortage: Nearly 90% of hotels in Shivamogga to close down operations on March 12 - 2

Rationing and Wider Impact

The disruption in LPG supply is linked to broader geopolitical tensions in West Asia, involving Israel, the US, and Iran, impacting global energy markets. This scarcity appears to have led to a prioritization of domestic households in LPG distribution, according to statements from Bharat Petroleum.

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LPG cylinder shortage: Nearly 90% of hotels in Shivamogga to close down operations on March 12 - 3

While Shivamogga faces immediate closures, similar anxieties are echoed elsewhere. The Bengaluru Hotels Association had, as early as March 9, voiced concerns about potential shutdowns if supply issues persisted. The impact of the shortage extends beyond the hospitality sector, affecting institutions like the Dr MGR Educational and Research Institute in Chennai, which suspended classes until March 25. Even religious institutions, such as Varanasi’s Kashi Vishwanath Temple, have had to alter their processes for preparing prasad due to the gas constraints.

LPG cylinder shortage: Nearly 90% of hotels in Shivamogga to close down operations on March 12 - 4

Authorities in regions like Nagpur have initiated raids against alleged LPG hoarding, underscoring the seriousness of the supply crisis. In Jhansi, police reported recovering 524 stolen LPG cylinders and apprehending seven individuals, including a gas agency owner, highlighting potential illicit market activities during the shortage. The Shirdi Sai Baba Trust, however, reported maintaining a 15-day LPG stock.

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Frequently Asked Questions

Q: Why are Shivamogga hotels closing starting March 12?
Hotels in Shivamogga are facing closures from March 12 because gas agencies have stopped supplying commercial LPG cylinders. Most hotels have only 5-6 days of gas left.
Q: How many Shivamogga hotels will be affected by the LPG cylinder shortage?
Around 90% of the 500 hotels and restaurants in Shivamogga are expected to close or reduce their services. This includes about 200 members of the Shivamogga City Hotel Owners’ Association.
Q: What is causing the LPG cylinder supply problem in Shivamogga?
The shortage is linked to global issues in West Asia affecting energy markets. It seems domestic households are being given priority for LPG supplies.
Q: Are other cities in Karnataka also facing LPG supply issues?
Yes, the Bengaluru Hotels Association also raised concerns about potential shutdowns on March 9 if the supply problems continued. The issue is not limited to Shivamogga.
Q: Has the LPG shortage affected places outside of Karnataka?
Yes, a university in Chennai suspended classes, and the Kashi Vishwanath Temple in Varanasi had to change how they prepare food. Raids for hoarding LPG happened in Nagpur and Jhansi.