Hospitality industry bodies welcome govt decision to allocate 20% of average monthly commercial LPG requirement to hotels, restaurants

New Delhi: Industry associations said while they have taken note of the announcement regarding the allocation of around 20% of the average monthly commercial LPG requirement to help address the shortage, the key concern remains how quickly this allocation translates into distribution and availability at the ground level.

"The allocation may still be insufficient to sustain operational costs and meet the demand of the hospitality sector, particularly for establishments handling large-scale catering and high-volume food preparation. We estimate that nearly 30% of hotels and restaurants are shut due to the on-going shortage," said Pradeep Shetty, VP, FHRAI and spokesperson, Hotel and Restaurant Association (Western India).

Shetty said establishments that have continued operations have largely done so under curtailed conditions, with reduced operating hours, limited menus and restricted kitchen activity in order to conserve available gas stocks.


"If fresh supplies do not reach the market soon, more establishments may be forced to temporarily shut operations in the coming days, particularly small and medium-sized eateries that operate with limited reserves," he added.

FHRAI and HRAWI have issued advisories to its members to adopt practical operational measures to manage the situation, including conserving available fuel, temporarily rationalising menus to reduce high gas consumption items, integrating electric appliances such as induction cooktops and convection ovens where feasible and adjusting operating hours to focus on peak service periods. The Associations have also urged establishments to avoid panic buying or hoarding of LPG cylinders, as such actions could further destabilise the market and invite regulatory scrutiny, Shetty said.

In a seperate statement, KB Kachru, president, Hotel Association of India (HAI) and chairman, South Asia, at Radisson Hotel Group said the association welcomes the government’s decision to allocate 20% of the average monthly commercial LPG requirement to hotels and restaurants, providing much-needed relief amid ongoing supply challenges.

"We also appreciate the commitment to additional supply measures and the close coordination between the ministries of petroleum and tourism and industry stakeholders to monitor the situation and swiftly address concerns," he said.

"This collaborative approach will ensure stability for the hospitality sector, and such steps will hopefully ensure an uninterrupted supply to this sector," he added.