Karnataka Government Suspends Commercial LPG Supply to Hotels Amid Severe Shortage
In a significant blow to the hospitality sector, the Karnataka government announced on Friday that it will not supply commercial LPG cylinders to hotels across the state for the next 7 to 10 days. This decision dashes the hopes of restaurant owners for an early return to full-scale operations, with many establishments already struggling due to the ongoing gas crisis.
Widespread Impact on Hospitality Industry
The shortage has forced at least 30% of hotels across Karnataka to shut down completely, while approximately 50% of small eateries in Bengaluru have either suspended operations or significantly trimmed their services. This disruption comes at a time when the hospitality industry was hoping to recover from previous challenges, now facing another major operational hurdle.
Food and Civil Supplies Minister KH Muniyappa, who reviewed the ground situation, explained the government's position during a legislative council session. "With oil companies left with limited stock, ensuring normal supply was extremely difficult," Muniyappa stated. He emphasized that the government has advised hoteliers to "patiently wait" for 7-10 days until the situation improves.
Supply Chain Disruptions and Alternative Measures
Minister Muniyappa provided details about the supply chain issues affecting LPG availability. "Two carriers managed to arrive from the Strait of Hormuz with supplies, while 10-12 are held up. It will take time for them to reach our shores. Until then, we have to make do with what we have," he explained to council members Ivan D'Souza and Nagaraj Yadav, who had raised concerns about the commercial cylinder shortage.
As an interim solution, the government has urged hoteliers to switch to electric stoves to maintain at least partial operations during this critical period. This recommendation comes as authorities scramble to manage the limited available resources.
Priority Sectors and Price Monitoring
While hotels face supply cuts, the government has assured that LPG supply to essential institutions will continue uninterrupted. This includes:
- Hospitals and healthcare facilities
- Hostels and residential schools
- Large manufacturing facilities
- Vehicle fuel, including autorickshaws
Addressing concerns about autorickshaw fuel availability, Muniyappa clarified that oil companies have been instructed to ensure uninterrupted supply of auto LPG at fuel stations. He firmly ruled out any disruption in this sector, despite reports from legislators about potential shortages.
Price Control Measures Implemented
The minister also addressed complaints about price manipulation during the crisis. Several fuel stations across Karnataka have allegedly increased auto LPG prices by Rs 20 to Rs 25 per kilogram, taking advantage of the supply constraints.
In response, Muniyappa has directed deputy commissioners to closely monitor the situation and take strict action against unauthorized price hikes. "In instances of unauthorized price hike, deputy commissioners will raid and seal such stations, and area police inspectors will monitor the price," he added, emphasizing the government's commitment to preventing exploitation during this challenging period.
The government's comprehensive approach aims to balance limited resources while protecting consumers from price gouging, even as the hospitality sector faces temporary operational restrictions that could significantly impact business recovery and employment in the industry.
